TL/DR –
US Treasury Secretary Janet Yellen, in an interview with Bloomberg, commented on President Biden’s forthcoming announcement of increased tariffs on China, stating that the move aims to protect the stimulus being provided through the Inflation Reduction Act. The tariffs are intended to support strategic industries like semiconductors and clean energy, which Biden considers vital for national security and job growth, and to counter China’s subsidies in advanced manufacturing that have led to overcapacity. Yellen also mentioned her recent visit to China and affirmed the US’s commitment to preventing Chinese overcapacity from harming emerging US industries.
Treasury Secretary Yellen Discusses Increased Tariffs on China
In a recent interview with Bloomberg, Treasury Secretary Janet Yellen confirmed President Joe Biden’s plans to raise tariffs on China. The decision is part of a strategy to safeguard the stimulus provided through the Inflation Reduction Act, which aims to bolster specific industries.
Yellen shared that it is essential for the United States to maintain a significant role in strategic sectors like semiconductors and clean energy. These industries are the foundation of job creation and national security. She voiced concerns over the country’s dependency on China in these sectors, criticizing China’s sizeable subsidies in advanced manufacturing that have led to oversupply.
She further emphasized that the President is committed to protecting the investments made in these industries, which are creating manufacturing jobs in regions previously overlooked or impacted by deindustrialization. “We will not allow Chinese overcapacity to harm our emerging industries,” Yellen declared, referring to her recent visit to China. She, however, refrained from revealing any details about the 301 review on tariffs.
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