Former Treasury Secretary Sounds Alarm on Economic Impact

Janet Yellen, the former US Treasury Secretary, has issued a stark warning about the potential economic fallout from President Donald Trump's trade tariffs. According to Yellen, these levies could have a "tremendously adverse" effect on American economic growth, particularly for businesses reliant on imports from China for essential minerals.

Rising Recession Risks

Yellen expressed concern that the tariffs could "hobble" American businesses and push the US economy into a recession. "I'm not yet ready to say that I’m forecasting a recession, but certainly the odds have gone way up," she told the Financial Times. Her comments come amid data showing the US GDP shrinking for the first time in nearly three years.

Market Volatility and Temporary Suspensions

Trump's imposition of heavy "reciprocal" duties on April 2 led to significant market volatility. While most of these tariffs have been temporarily suspended for 90 days, the 145% taxes on Chinese imports remain in place, raising concerns about long-term economic stability.