Biden calls Trump's tariff approach 'major mistake'

WASHINGTON — US President Joe Biden on Tuesday called President-elect Donald Trump's tariff approach "a major mistake".

"He seems determined to impose steep universal tariffs on all imported goods brought to this country on the mistaken belief that foreign countries will bear the cost of those tariffs rather than the American consumer," Biden said in a speech at the Washington, DC-based think tank Brookings Institution.

"Who do you think pays for this? I believe this approach is a major mistake. I believe we have proven that approach is a mistake over the past four years," said Biden.

In the speech, the outgoing president reflected on the economy he inherited from Trump and his administration's work following the COVID-19 pandemic. He also criticized Trump's economic plan, warning that it means "another tax cut for the very wealthy".

'A real cost'

" (By) all accounts the incoming administration is determined to return the country to another round of trickle-down economics and another tax cut for the very wealthy that will not be paid for or, if paid for, is going to have a real cost," Biden said.

At a Wall Street Journal CEO Council event on Tuesday, US Treasury Secretary Janet Yellen also expressed concerns over Trump's proposal to impose widespread import tariffs.

Imposing broad-based tariffs could "raise prices significantly for American consumers and create cost pressures on firms" that rely on imported goods, Yellen said when asked about Trump's plans.

She cautioned that this could weigh on the competitiveness of certain sectors and increase costs to households.

"This is a strategy I worry could derail the progress that we've made on inflation, and have adverse consequences on growth," she said.

In an interview with NBC News on Sunday, Trump said he would fulfill a campaign promise to levy tariffs on imports from the United States' major trading partners, including Mexico, Canada and China, saying that tariffs "cost Americans nothing".

Canadian Prime Minister Justin Trudeau said on Monday that people in the US "are beginning to wake up to the real reality that tariffs on everything from Canada would make life a lot more expensive" and said he will retaliate if Trump goes ahead with them.

Trump threatened to impose a 25 percent tax on all products entering the US from Canada and Mexico unless they stem the flow of migrants and drugs.

"Let's not kid ourselves in any way, shape or form, 25 percent tariffs on everything going to the United States would be devastating for the Canadian economy," Trudeau said. "It would also, however, mean real hardship for Americans as well. … All of those things (imported from Canada) would get more expensive."

Xinhua - Agencies