Former U.S. Treasury Secretary Yellen: The likelihood of a U.S. recession has greatly increased, and Trump’s tariffs will have a huge negative impact.

On May 2, the Financial Times reported that former U.S. Treasury Secretary Yellen warned that Trump’s tariffs would have a “huge adverse” impact on the U.S. economy, as they “hinder” companies that rely on key mineral supplies from China. Trump’s broad taxation of trade partners could push the U.S. into recession. “(The tariff strategy) will have an extremely adverse effect on the U.S., on consumers, and on the competitiveness of businesses that rely on imported raw materials. About 40% of the goods imported by the U.S. are raw materials for domestic production. I’m not ready to say that I predict a recession will occur, but it is certainly true that the possibility has increased significantly.” ( Jin10 )