U.S. Treasury Secretary Says Prolonged Trade War with China Is “Not Sustainable”
In a candid assessment of ongoing economic tensions, U.S. Treasury Secretary Janet Yellen has stated that the current trade war between the United States and China is “not sustainable,” highlighting the need for a strategic shift in how the world’s two largest economies manage their complex relationship.
Speaking during an international economic forum this week, Yellen acknowledged the long-standing disputes over tariffs, intellectual property, and market access, but emphasized that continued economic confrontation is not a viable long-term strategy for either nation. Her remarks signal a possible pivot in U.S. trade policy and have already triggered widespread discussion among global markets and policymakers.
“The trade tensions between the U.S. and China have created significant disruptions in global supply chains and market uncertainty,” Yellen said. “While we must continue to defend American economic interests, we also need to find a more stable, cooperative path forward.”
The Treasury Secretary’s comments come amid rising economic friction between Washington and Beijing, with both sides imposing tariffs and restrictions on key imports and exports over the last several years. While some American manufacturers and tech companies have benefited from trade protections, others — including farmers, retailers, and exporters — have faced increased costs and reduced access to the Chinese market.
Yellen emphasized that mutual economic interdependence between the two nations makes a full decoupling impractical. She advocated for strategic engagement over confrontation, stating that dialogue and rules-based trade reforms are essential to avoid further economic strain.
“The global economy is too interconnected for prolonged standoffs,” she added. “We must pursue a balanced strategy that promotes fair competition without destabilizing international trade.”
China has yet to formally respond to Yellen’s statements, though Chinese officials have previously expressed similar concerns over escalating trade restrictions and have called for “constructive dialogue” with the U.S.
The Biden administration has so far maintained many of the tariffs imposed during the Trump era, though it has also shown openness to selective tariff relief and negotiations. Yellen’s remarks could indicate that the White House is considering a more collaborative economic policy toward China in the months ahead.
Economists and trade analysts have praised the Treasury Secretary’s pragmatic tone, noting that trade wars often result in collateral damage to both sides and ripple effects across global markets.
With the U.S. presidential election approaching, trade policy is expected to remain a key issue, especially as American businesses and consumers continue to feel the impact of inflation and supply chain disruptions.
Source : Swifteradio.com
