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Janet Yellen warned that Donald Trump's prices will have an “extremely unfavorable” impact on the American economy while “convent” companies that rely on critical mineral supplies from China.
ShoutWho was secretary of the Treasury under former president Joe Biden and was previously president of the Federal Reserve, said that Trump's extensive levies on trade partners were likely to switch the United States in the recession.
“(The tariff strategy) will have extremely negative consequences for the United States, for consumers, for the competitiveness of companies that depend on imported inputs,” Yellen told Financial Times, noting that around 40% of goods imported into the country were inputs for domestic production.
She added: “I am not yet ready to say that I plan a recession, but the chances have certainly increased.”
Yellen's comments came while data published this week highlighted an import boom while companies rushed to stock goods, which pushed GDP in contraction territory in the first quarter.
Expenses and production in the US economy of 29 TN has remained largely robust, but surveys published in recent weeks have shown that the feeling of consumers and businesses were darken considerably.
Trump announced a steep “reciprocal” price Against many countries on April 2, triggering Graves Rots on the market. Later, he took a break most for 90 days, but 145% of samples from most Chinese products remained in place.
Yellen, who spoke after joining the Advisory Council of Angeleno Group, a low-costly-based carbon technology company, said the prices could be particularly problematic for the US Clean Energy sector.
“We are strongly dependent on China for most critical minerals entering clean energy technologies, batteries and others,” she said. “And by putting huge prices for them, I think we potentially potentially potential industries that could have a chance.”
It contrasts the approach with what it argued was a more judicious approach to the protection of exchanges under the Biden administration, which required 50% tariffs on certain Chinese solar products and 100% on Chinese electric cars.
“I supported very limited prices that were well targeted …
“But when you have decided to support, say, the manufacture of solar cells, you must be extremely careful not to put more prices yet on the entries that come back to it.”
