Yellen Says Trump’s High U.S. Tariff Plan "Deeply Misguided"

US Treasury Secretary Janet Yellen stated that walling off the US economy, as proposed by Republican presidential candidate Donald Trump, would be "deeply misguided," raising prices for American consumers and making US companies less competitive, David Lawder reported for Reuters.

A "go it alone" approach to foreign and economic policy—similar to the approach taken during Trump’s presidency—would make it nearly impossible to advance US economic and national security interests today, Yellen warned. I Photo: Paul Blake, World Bank Photo Collection Flickr

In excerpts of remarks delivered at the Council on Foreign Relations (CFR) in New York, Yellen asserted that the US cannot afford to return to past unilateral actions to advance its economic and national security interests.

While she did not mention Trump specifically, she referenced his proposals for steep tariff hikes.

Trump has suggested raising tariffs to 10% to 20% on nearly all US imports and up to 60% on imports from China, with specific threats of up to 200% on individual companies like John Deere if they shift production to Mexico.

Trump has called tariffs "the most beautiful word in the world," arguing they would drive US manufacturing growth.

"Calls for walling America off with high tariffs on friends and competitors alike or by treating even our closest allies as transactional partners are deeply misguided," Yellen said in the CFR excerpts released by the Treasury.

"Sweeping, untargeted tariffs would raise prices for American families and make our businesses less competitive."

A "go it alone" approach to foreign and economic policy—similar to the approach taken during Trump’s presidency—would make it nearly impossible to advance US economic and national security interests today, Yellen warned.