Former Treasury Secretary Sounds Alarm on Economic Impact

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

Rising Recession Risks

Yellen expressed concerns that the tariffs could "hobble" these businesses and even push the US 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.

Economic Data Reflects Growing Concerns

Her comments come in the wake of recent data showing the American GDP shrinking for the first time in nearly three years. Trump's imposition of heavy "reciprocal" duties on April 2 has led to significant market volatility, with the 145% taxes on Chinese imports remaining in effect despite the temporary suspension of most other tariffs.