TL/DR –
US Treasury Secretary Janet Yellen spoke in an interview on Bloomberg about President Biden’s upcoming announcement regarding increased tariffs on China. The decision is motivated by the administration’s desire to protect American strategic industries such as semiconductors and clean energy from unfair Chinese competition and subsidies, as well as to safeguard investments from the Inflation Reduction Act. Yellen also highlighted the commitment to prevent Chinese overcapacity from harming emerging US industries.
Yellen Backs Biden’s Plan to Increase China Tariffs for US Industry Protection
In a recent Bloomberg interview, Treasury Secretary Janet Yellen confirmed President Joe Biden’s intent to elevate tariffs on China. The goal is to safeguard the benefits from the Inflation Reduction Act, aiding specific industries in the US.
According to Yellen, the move is crucial for the US to maintain a strategic foothold in sectors like semiconductors and clean energy. These industries are deemed as the backbone of employment and national security. She, along with Biden, consider it unacceptable for the US to be entirely reliant on China in these domains. Especially given China’s unscrupulous tactics of providing significant subsidies in essential advanced manufacturing sectors, leading to overproduction.
Yellen further elucidated that the stimulus from the Inflation Reduction Act aims to support industries that generate good manufacturing jobs in regions that have either been neglected or suffered from deindustrialization. Yellen supports Biden’s commitment to preserving these investments. Although she refrained from divulging details of the 301 tariffs review, she affirmed her stance during her recent China visit, ensuring that Chinese overproduction would not threaten US emerging industries.
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