US Treasury Secretary Janet Yellen says walling off the economy as proposed by Republican presidential candidate Donald Trump would be 'deeply misguided,' raising prices for American consumers and making US companies less competitive, Reuters reports
US Treasury Secretary Janet Yellen says walling off the economy as proposed by Republican presidential candidate Donald Trump would be 'deeply misguided,' raising prices for American consumers and making US companies less competitive, Reuters reports. Ms Yellen, speaking to Council on Foreign Relations in New York, said that the US cannot afford to return to past unilateral actions to advance its own economic and national security interests.
She did not name Trump specifically, but referred to his calls for steep tariff hikes. Mr Trump has proposed raising tariffs to 10 to 20 per cent on virtually all US imports, and to at least 60 per cent on imports from China.
He has also made specific threats of up to 200 per cent on individual companies such as John Deere if they move production to Mexico.
A 'go it alone' approach to foreign and economic policy - like that pursued when Trump was president - would make it virtually impossible to advance US economic and national security interests, she said, including pressuring Russia over its invasion of Ukraine, improving supply chain security or addressing China's aggressive industrial policies.
Ms Yellen emphasised the need to create a healthier economic relationship with China, but argued against cutting ties to Beijing.
'Trade and investment with China can bring significant gains to American firms and workers and must be maintained,' she said. 'But we also must have a healthy economic relationship based on a level playing field.'
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