Yellen: Full imposition of tariffs will increase US inflation

The Zhitong Finance App learned that US Treasury Secretary Janet Yellen plans to warn in a speech that the economic policies proposed by Republican presidential candidate Trump will increase inflation and damage businesses.

The “New York Times” quoted Yellen's speech as saying that Yellen will criticize the Foreign Relations Committee. Although she is not expected to name Trump, she will point out that the broad tariffs supported by the former US president and some congressional Republicans will damage the US economy.

Yellen plans to say, “Comprehensive, untargeted tariffs will raise prices for American households and reduce the competitiveness of our businesses.”

Trump has made tariffs and tax cuts a key element of his economic policy in communicating to voters, most of whom see the economy as the biggest campaign issue in the 2024 presidential election.

Trump defended his trade policies and other fiscal proposals during an interview on Tuesday. He insisted that his trade policy — which requires high tariffs on goods from rivals such as China and allies such as the European Union — will revive US manufacturing and generate sufficient revenue to ease concerns about the growing deficit.