Yellen's Stark Warning on Tariffs

Former US Treasury Secretary Janet Yellen has issued a stark warning about the potential economic fallout from President Donald Trump's trade levies. According to Yellen, these measures could have a "tremendously adverse" effect on American economic growth, potentially pushing the US into a recession.

The Impact on Businesses and Consumers

Yellen highlighted the significant strain these tariffs place on businesses reliant on essential mineral imports from China, noting that approximately 40% of American imports are materials for domestic manufacturing. "The tariff strategy will have tremendously adverse consequences for the United States, for consumers, for the competitiveness of firms that rely on imported inputs," she told the Financial Times.

Economic Indicators and Market Volatility

Her comments come in the wake of recent data showing the American GDP contracting for the first time in nearly three years. The imposition of heavy "reciprocal" duties by Trump on April 2 has led to notable market volatility. While most tariffs were temporarily suspended for 90 days, the 145% taxes on Chinese imports remain in effect, raising concerns about the long-term economic outlook.