US Treasury secretary Janet Yellen warned the incoming Donald Trump administration against imposing sweeping tariffs, saying they would lead to higher inflation.
Donald Trump, who is set to take office next month, has threatened steep tariffs on Canada, Mexico and China — important US trading partners.
Yellen said that while there was some value in those types of penalties to tackle “unfair trade practices”, the imposition of broad measures could have an “adverse impact on the competitiveness of some sectors of the US economy and could significantly raise costs to households”.
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