China Likely to Retaliate Against Broad-Based Tariffs, Yellen Says

The video discusses the potential responses to tariff threats, focusing on how countries might retaliate. It highlights concerns about overcapacity in Chinese industries due to large subsidies, which could harm domestic firms. Strategic tariffs have been implemented to protect critical sectors, affecting $18 billion in trade with China. However, broad-based tariffs are criticized for raising prices and harming competitiveness, as they make imports more expensive.

What is a common reaction of countries when faced with unilateral tariff actions?

• They seek to negotiate.

• They often retaliate.

• They ignore the actions.

• They increase their own tariffs.

What industries are mentioned as having overcapacity issues in China?

• Advanced manufacturing and clean energy

• Tourism and hospitality

• Automobiles and pharmaceuticals

• Textiles and agriculture

What is the main reason for implementing strategic tariffs according to the speaker?

• To reduce consumer prices

• To protect critical domestic sectors

• To improve international relations

• To increase government revenue

What is a potential negative effect of broad-based tariffs?

• They can lower domestic production costs.

• They can raise prices and harm competitiveness.

• They can increase competitiveness.

• They can improve trade relations.

How much trade was affected by the strategic tariffs mentioned?

• $18 billion

• $25 billion

• $5 billion

• $10 billion