(OPINION) Former U.S. Treasury Secretary Janet Yellen has described Donald Trump’s trade war policies as “the worst self-inflicted wound” ever imposed on a thriving economy.
Her remarks, made in early April 2025, have reignited debates over the economic consequences of Trump’s tariff-heavy approach during his presidency.
Yellen’s comments were first highlighted in an interview covered by The Hill, where she labeled Trump’s tariffs as unprecedented in their damage to an otherwise “well-functioning economy.”
She argued that the aggressive trade policies, particularly against China, disrupted supply chains, increased costs for American consumers, and strained international relationships without delivering the promised economic benefits.
“It’s the worst self-inflicted wound that I have ever seen an administration impose,” Yellen stated, emphasizing the scale of the disruption.
Echoing this sentiment, Newsweek reported on April 10, 2025, that Yellen’s critique focused on the tariffs’ ripple effects.
The article noted her assertion that the policies not only failed to revive domestic manufacturing as intended but also alienated allies, complicating global trade dynamics.
Newsweek further pointed out that Yellen’s tenure as Treasury Secretary under President Biden gave her a front-row seat to the aftermath of these policies, lending weight to her assessment.
Business Insider provided additional context, suggesting that Yellen’s remarks may be tied to recent discussions about Trump’s potential return to office and his renewed emphasis on tariffs. In its April 10 coverage, the outlet quoted economists who align with Yellen’s view, noting that the trade war added an estimated $80 billion in annual costs to U.S. businesses and consumers. The piece also highlighted how retaliatory tariffs from countries like China hit American agriculture particularly hard, a point Yellen reportedly underscored as evidence of the policy’s shortsightedness.
Meanwhile, Yahoo Finance offered a slightly different angle, framing Yellen’s statements as part of a broader warning about protectionism.
Its report, published on April 10, 2025, cited her concern that such policies weaken the U.S.’s position in a globalized economy. “Tariffs are not a magic bullet,” Yellen was quoted as saying, urging a more collaborative approach to trade.
The article also referenced data showing that U.S. GDP growth slowed in key sectors during the tariff years, supporting her critique.
The timing of Yellen’s remarks—coinciding with a period of economic reflection as the 2024 election cycle looms—adds a political dimension to the story.
Silicon Valley News, in a piece dated April 10, 2025, suggested that her comments could be interpreted as a preemptive strike against a revival of Trump-era policies.
The outlet noted that Yellen’s experience navigating post-pandemic recovery efforts contrasts sharply with the trade war’s chaotic legacy, a narrative she appears keen to emphasize.
While Yellen’s critique has garnered significant attention, it’s not without pushback.
Some conservative-leaning commentators, as reported by The Hill, argue that the tariffs forced a necessary reckoning with China’s trade practices, even if the execution was flawed.
However, Yellen’s position, backed by her extensive economic expertise, seems to resonate more widely among analysts who view the trade war as a cautionary tale.
