U.S. Treasury Secretary Janet Yellen on Thursday defended President Joe Biden's increased tariffs on certain Chinese goods as highly strategic but said Republican presidential candidate Donald Trump's tariff proposals would be much broader and raise costs for consumers.
Yellen told a news briefing in Atlanta that Biden's new tariffs are aimed at protecting electric vehicles, solar energy products and semiconductors from excess Chinese capacity created by Beijing's over-investment. The administration refuses to allow U.S. firms in these sectors "to be put out of business" by coordinated Chinese dumping of exports, she said.
Other countries are taking similar actions, Yellen said, noting this month's G7 leaders statement opposing China's industrial and business policies.
"Given that China has not done anything, really, to address those concerns, we thought it was inappropriate to remove those tariffs," Yellen said.
"And I believe that is a substantial enough program that it would both raise costs to consumers broadly on all the imports they buy, and harm American businesses, many of whom rely on imported goods for their supply chains," she said. "It would significantly raise their costs."
