Former Treasury Secretary Sounds Alarm on Trade Policies

Janet Yellen, the former US Treasury Secretary, has issued a stark warning about the potential economic fallout from President Donald Trump's trade levies. She predicts a "tremendously adverse" impact on American growth, citing the strain on businesses reliant on Chinese mineral imports and the heightened risk of a recession.

Impact on US Economy and Manufacturing

Yellen emphasized to the Financial Times that approximately 40% of American imports are crucial for domestic manufacturing. The tariffs, she argues, not only threaten consumer prices but also the global competitiveness of US firms.

Recent Economic Indicators Raise Concerns

The warning comes amid troubling economic signals, including a contraction in the US GDP for the first time in nearly three years. Trump's imposition of heavy duties on April 2 has led to significant market instability, with lasting 145% taxes on Chinese imports exacerbating tensions.