Yellen Warns US Recession Risk Up as Trump Tariffs Trigger 0.3% GDP Drop, First Decline in 3 Years
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16 posts • GPT (4.1)
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Former US Treasury Secretary Janet Yellen has warned that the risk of a recession in the United States has significantly increased following the implementation of sweeping tariffs by President Donald Trump. Yellen stated that the tariffs, particularly those targeting Chinese goods, have disrupted financial markets, hurt consumers and businesses, and could restrict supplies of critical minerals essential for industries such as clean energy and batteries.
Yellen noted that while she is not yet forecasting a recession, the likelihood has "gone way up" as a result of the tariffs. She emphasized that the US economy is highly dependent on imports from China for key minerals, and that the broad tariffs could have "tremendously adverse" consequences for American businesses and consumers. The US imposed a 145% tariff on Chinese imports, with temporary exemptions for some countries.
Recent economic data showed that the US gross domestic product (GDP) contracted by 0.3% in the first quarter of 2025, the first quarterly decline in three years. Analysts attribute this contraction in part to companies increasing imports ahead of the tariff implementation, which began on April 2.
President Trump has acknowledged the possibility of a recession as a result of his tariff policies, stating, "Anything can happen," and "We're gonna do fantastically." He maintains that these measures are part of a transition period and will ultimately lead to what he describes as "the greatest economic boom in history."
Former US Treasury Secretary Janet #Yellen warns that Trump's broad tariffs risk triggering a recession. In a Financial Times interview, she said the tariffs hurt American consumers and businesses, and targeting Chinese goods could disrupt critical mineral supplies. #Tariffs
The recent decline in GDP in the United States raised fears of a possible recession, still driven by the trade war and high tariffs imposed by Donald Trump.
#JornalDaTarde #JT
