U.S. Treasury Secretary Janet Yellen voiced concerns about potential repercussions from China in response to anticipated U.S. tariff actions, highlighting the delicate balance in U.S.-China trade relations.
Speaking after a broadband event in rural Fredericksburg, Virginia, Yellen emphasized the need for strategic adjustments to tariffs previously imposed by the Trump administration.
While details of the expected changes remain undisclosed, Yellen assured that any alterations would be narrowly targeted, with a focus on specific sectors of concern.
President Biden‘s administration aims to maintain a targeted approach in addressing trade issues with China, prioritizing fairness and avoiding broad-based measures. However, Yellen acknowledged the possibility of a significant Chinese response, underscoring the complexities of trade dynamics between the two nations.
The upcoming tariffs, set to be announced by President Biden, are expected to impact sectors such as electric vehicles, semiconductors, solar equipment, and medical supplies.
Yellen reiterated U.S. concerns regarding China’s industrial policies, particularly in areas like clean energy and semiconductors, where Chinese investments have led to global overcapacity.
Yellen emphasized the importance of a level playing field for competition and expressed hope that China would recognize the targeted nature of U.S. actions.
Despite tensions, she highlighted the desire to maintain trade relations and stabilize economic ties with China, emphasizing the need for fair practices and addressing issues such as massive subsidies.
While the U.S. seeks to avoid a trade war, Yellen underscored the importance of fair competition and addressing unfair practices. The goal remains to stabilize economic relations with China while ensuring that disagreements are addressed through dialogue and negotiation.
