Yellen calls comprehensive tariffs deeply and criticizes Trump

Yellen calls comprehensive tariffs deeply and criticizes Trump

US finance minister Janet Yellen warned on Thursday that the "deeply misunderstood" Customs would heat inflation and damage American companies. In doing so, she has a sharp criticism of the economic policy of former President Donald Trump.

warning of negative economic consequences

The warning that was pronounced during a speech at the Council on Foreign Relations in New York City is important at a time when economic issues are of the utmost importance for voters, since the elections are pending in less than three weeks. Trump has made the demand for high tariffs a central point of his agenda. Vice President Kamala Harris has in turn warned that his customs plans would increase the prices for American families, and described this as "Trump tax."

rejection of a one -sided international strategy

yellen, who is normally obliged to political neutrality and Trump did not mention in her speech, spoke out against comprehensive tariffs and a "ego strategy" on the global stage.

"Demands to areolate America through high tariffs from friends and competitors or even treat our closest allies as transaction -oriented partners are deeply misunderstood," said Yellen. "Comprehensive, non -targeted tariffs would drive up the prices for American families and make our companies less competitive."

global challenges require cooperation

"And we cannot even hope to promote our economic and security policy interests - such as resistance to Russia's illegal invasion of Ukraine - if we act alone," she added. "The challenges that we are facing today, such as interrupted supply chains, climate change, global pandemic preparation and China's industrial overcapacity, also show that we cannot simply fall back on outdated strategies."

defense of the existing tariffs

"Until China is not seriously trying to react to the unfair trade practices in accordance with 301, President Biden believes that we should not reward China by reducing the tariffs," she added.

Trump's tariffs and future politics

Trump introduced comprehensive tariffs to around $ 300 billion in Chinese products. The bid administration later kept these tariffs and even expanded it in some cases.

Trump explained that in the event of his re -election, he would introduce tariffs of up to 20% to all foreign imports to the USA and another customs of over 60% to all Chinese imports. He also said that he would implement a "100%customs" on countries implemented by the use of the US dollar.

"For me the most beautiful word in the dictionary inches," said Trump on Tuesday at the Economic Club of Chicago.

reactions to the criticism of customs plans

Trump defended his customs claims The editor -in -chief of Bloomberg News, which the negative effects were asked, said that it was "simply simple math" that tariffs would transfer higher costs to American consumers.

"Number one, it is to protect what we have here and the new companies that will settle because we will bring thousands of companies to this country," said Trump and argued that tariffs would have a "positive, non -negative" effect on the economy.

fiscal responsibility and tax policy

yellen also addressed direct criticism of the promise of the Republicans to extend tax cuts from the Trump era. During the question and answer session: "I think it is important for our nation to pursue a responsible budgetary policy and to be on a sustainable fiscal path. Some of the proposals on the part of the Republicans - and I should say that I am restricted by the HATCH ACT and do not want to comment on electoral policy - lead to additional deficits of 5 trillions next 10 years.

This article has been updated with additional information.

Donald Judd, Jordan Valinsky and Piper Hudspeth Blackburn from CNN also carried to this report.