Janet Yellen, serving as the 78th U.S. Treasury secretary, emphatically declared on Sunday that bolstering Ukraine represents “the single best thing we can do for the global economy.” Furthermore, Yellen expressed caution regarding the premature removal of trade constraints against China, a remnant of the Trump era. The Treasury secretary flagged the Asian superpower for potential “unfair trade practices,” illustrating her firm stance on international economic fairness.
Yellen: Ukraine Aid Essential for Global Economy
On July 16, U.S. Treasury secretary Janet Yellen held a press conference in Gandhinagar ahead of the G20 summit and she discussed the global economy. Yellen noted to the pre-credentialed press that she would “push back” against the people saying that developing nations could use more help than Ukraine. “Ending this war is first and foremost a moral imperative,” Yellen explained to reporters in Gandhinagar. The Treasury secretary added:
But it’s also the single best thing we can do for the global economy.
Detractors, however, argue that U.S. lawmakers have let down their own economy as numerous cities nationwide are succumbing to destitution, riddled with crime and squalor. Figures indicate that America has funneled nearly $75 billion into Ukraine through financial and military support.
The shrooms are strong with this one. https://t.co/S0M7Yjjhkn
— Sven Henrich (@NorthmanTrader) July 16, 2023
Some calculations even escalate this figure to a staggering $113 billion since the Russia-Ukraine conflict ignited. In the imminent G20 summit, the World Bank, Yellen, and the International Monetary Fund (IMF), among other key players, will also deliberate on the regulation of cryptocurrencies and strategies to address climate change in developing countries.
China Tariffs Still Necessary
Yellen broached the topic of rescinding China’s tariffs, albeit asserting it was premature to do so. In 2018, Donald Trump, the then-U.S. president, implemented three substantial tariffs impacting approximately $350 billion worth of Chinese merchandise. These tariffs continue to remain in effect under the Biden administration. Katherine Tai, Biden’s lead trade representative, initiated a comprehensive analysis of the Trump-era tariffs. “Tariffs were put in place because we had concerns with unfair trade practices on China’s side, and our concerns with those practices remain, they really haven’t been addressed,” Yellen told the press.
She added:
Perhaps over time, this is an area where we could make progress, but I’d say it is premature to use this as an area for de-escalation.
While Biden was anticipated to lift some tariffs, it has been suggested that this action is now paused in response to China’s military posturing. In retaliation to the U.S. tariffs, China has imposed its own duties on a wide range of American goods, encompassing agricultural produce, automobiles, coal, copper scrap, fuel, buses, medical equipment, and more. Numerous studies have probed into the impact of these tariffs on the U.S. economy. Renowned economists Mary Amiti, Stephen J. Redding, and David Weinstein found that U.S. real income fell by $1.4 billion monthly by the end of the tariffs’ first year.
What do you think about Yellen’s statements about helping Ukraine and the tariffs against China? Share your thoughts and opinions about this subject in the comments section below.