Yellen: Biden Preparing for Chinese Reaction to Tariffs

According to U.S. Treasury Secretary Janet Yellen, the United States may face a strong reaction from China in response to any tariff actions taken by the U.S. This announcement comes ahead of anticipated new tariffs that will target specific sectors later this week.

Yellen mentioned in an interview with Bloomberg Television that President Biden’s approach focuses on addressing specific concerns without broad-based actions to hopefully avoid a significant Chinese response, although she acknowledges the possibility. The new tariffs, set to be announced by President Biden on Tuesday, will include increased levies on electric vehicles, semiconductors, solar equipment, and medical supplies.

Yellen emphasized that the U.S. is aiming to stabilize its economic relationship with China and does not desire a trade war. However, she noted that efforts are being made to ensure a fair playing field, as China is known for engaging in unfair practices like providing massive subsidies.