President Joe Biden recently criticised the tariff approach proposed by President-elect Donald Trump, calling it "a major mistake." Biden's comments came during a speech at the Brookings Institution in Washington, where he addressed the economic challenges and policies faced by the United States.
He expressed his concern over Trump's plan to impose steep tariffs on all imported goods, claiming that it was based on the false belief that foreign countries, rather than American consumers, would bear the cost of these tariffs.
Biden argued that this approach would ultimately harm American consumers. “Who do you think pays for this?” Biden questioned, emphasising that such a policy would lead to higher costs for ordinary Americans, rather than having the intended effect of pressuring foreign nations to pay for the tariffs.
Reflecting on the economic trajectory over the past few years, Biden stated, "I believe this approach is a major mistake. I believe we have proven that approach is a mistake over the past four years." His remarks were aimed at highlighting the detrimental effects of Trump's tariff policies, which Biden believes did not achieve the desired results.
In his speech, the outgoing US President also reflected on the economy he inherited from Trump, drawing a contrast between his administration's recovery efforts following the COVID-19 pandemic and the economic conditions under Trump’s leadership.
Biden described how his policies had aimed to rebuild the economy, highlighting the successes achieved despite the challenges posed by the pandemic.
Biden also took the opportunity to criticise Trump's broader economic plan, particularly the proposed tax cuts. He warned that these tax cuts, which he said would primarily benefit the wealthy, were a form of "trickle-down economics" that had been tried before without yielding significant benefits for the wider population.
"By all accounts, the incoming administration is determined to return the country to another round of trickle-down economics," Biden said, adding that the tax cuts would not be adequately funded and would ultimately create greater financial burdens.
Biden’s concerns were echoed by US Treasury Secretary Janet Yellen, who also expressed reservations about Trump's tariff plans. Speaking at a Wall Street Journal CEO Council event, Yellen warned that imposing widespread import tariffs could undermine efforts to reduce inflation.
She explained that such tariffs would not only increase costs for American consumers but could also hinder economic progress, particularly in the context of post-pandemic recovery.
In a more direct response to Biden’s criticism, Donald Trump, in an interview with NBC News, reaffirmed his intention to impose tariffs on imports from the US's major trading partners.
Trump stood by his previous statements, claiming that tariffs would not impose costs on Americans. "Tariffs cost Americans nothing," he said, reiterating that the burden of tariffs would fall on foreign countries and not US consumers.
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