WionDrive News Desk 
US Treasury Secretary Janet Yellen is set to deliver remarks on Thursday, stating that proposals to impose high tariffs, as advocated by Republican presidential candidate Donald Trump, are “deeply misguided.” In her address to the Council on Foreign Relations in New York, Yellen will argue that such actions would increase prices for American consumers and undermine the competitiveness of US businesses.
While Yellen refrained from naming Trump directly, she referenced his proposals for significant tariff hikes, which include raising tariffs to 10% to 20% on most imports and up to 60% on Chinese goods. Trump has even threatened tariffs of up to 200% on companies like John Deere if they relocate production to Mexico. On Wednesday, he labeled tariffs as “the most beautiful word in the world,” asserting they would boost US manufacturing.
Yellen contends that the approach of isolating the US economy through high tariffs and treating allies as mere transactional partners is fundamentally flawed. “Sweeping, untargeted tariffs would raise prices for American families and make our businesses less competitive,” she said in excerpts released by the Treasury.
She further emphasised that a unilateral approach to foreign policy—similar to that pursued during Trump’s presidency—would hinder the ability to advance US economic and national security interests today. This includes addressing Russia’s actions in Ukraine, enhancing supply chain security, and countering China’s aggressive industrial practices.
Yellen advocates for maintaining a constructive economic relationship with China, recognising that trade and investment can yield significant benefits for American workers and firms. However, she also stressed the importance of establishing a fair playing field, noting that barriers to market access and unfair business practices in China pose challenges for American companies and foreign firms operating there.
Defending President Joe Biden’s tariffs on critical Chinese imports—such as electric vehicles, semiconductors, and solar cells—Yellen highlighted that similar measures are being considered by US allies. This growing international consensus, she noted, sends a clear message to China about the need to reform its trade practices.
