Former US Treasury Secretary Yellen: Trump's "Tariff Bludgeon" Devastated the Economy

Former US Treasury Secretary and former US Fed Chair Janet Yellen criticized on Thursday that President Trump's tariff policy has "taken a devastating blow" to the economy. She said in a program, "When President Trump took over (the White House), the US economy was growing very strongly, the labour market was functioning well, the unemployment rate was low, and the record of job creation was excellent. Our economy was running well, but President Trump has sabotaged it."

It is reported that Yellen's criticism mainly focused on Trump's tariff policy, and the US stock market had previously fallen into a "continuous decline" due to his various threats and capriciousness.

The latest episode occurred this week: shortly after firmly launching "reciprocal tariffs," Trump announced that he had authorized a 90-day tariff suspension for countries that did not take retaliatory actions. Trump said that during this period, he would significantly reduce the reciprocal tariffs on these countries to 10%, and the suspension measures would take effect immediately.

His move initially caused the three major US stock indices to surge violently on Wednesday, with the Nasdaq index rising more than 12%, marking the second-largest single-day gain in history. However, by Thursday, as optimism faded and investors regained their composure, the three major indices collectively pulled back significantly.

When asked "how to evaluate the Trump administration's handling of the economy so far," Yellen replied,

"I'm afraid I can't give it a passing grade." According to the latest news, Trump's thinking has changed again. It is reported that he said at a cabinet meeting on Thursday that if countries cannot reach an agreement with the US, he will call off the 90-day "suspension period."

"If we cannot reach the agreement we want to reach, or the agreement we must reach, or the agreement that is beneficial to both parties, then we will return to the original state," he said.

According to White House National Economic Council Director Kevin Hassett, the US Trade Representative's Office has informed him that about 15 countries have already made "clear offers," and the US side is studying and evaluating these offers to decide whether they are good enough to be submitted to Trump for review. He also said that the White House is scheduled to hold a high-level meeting on Thursday to discuss the next steps in the negotiations.

Trump's "tariff stick" has attracted a lot of criticism. European Central Bank Governing Council member and Governor of the Bank of France Francois Villeroy de Galhau said on Wednesday that US President Trump's policies in recent weeks have weakened confidence in the US dollar.

He said in a recent interview that the Trump administration's protectionism and unpredictability are "bad factors" for the US economy, but this may be a positive factor for the development of the euro's "international role."

Former US Treasury Secretary Lawrence Summers said earlier this week that due to the US government's comprehensive tariff hikes on trading partners, the US economy is now heading towards a recession, which may lead to 2 million Americans losing their jobs.