Janet Yellen Warns: Tariffs Boost Inflation, Hurt Businesses

Treasury Secretary Janet Yellen is going to speak up against the idea of widespread tariffs, labeling them as a bad move. She'll be talking at the Council on Foreign Relations in New York City tomorrow afternoon. Just a few weeks before the election, voters care a lot about the economy. Trump's been pushing for high tariffs, but Vice President Kamala Harris says this would make things more expensive for families—calling it a "Trump tax. " Yellen won't name Trump directly, but she'll argue that tariffs hurt American families and businesses. She thinks it's a mistake to go it alone and not work with allies on issues like the invasion of Ukraine. She also believes that old strategies won't solve today's problems, like supply chain issues, climate change, and preparedness for pandemics. During his time in office, Trump imposed tariffs on $300 billion worth of Chinese products. The current administration, led by President Biden, has kept these tariffs. Trump's plans, if he wins the election, include tariffs of up to 20% on all foreign imports and even higher tariffs on Chinese goods. He also wants a 100% tariff on countries that stop using the US dollar. Trump thinks tariffs are good for the economy and protection. He says they'll bring new companies to the country. But others, like Bloomberg News Editor-in-Chief John Micklethwait, believe tariffs just make things more expensive for Americans.