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 are the potential responses of countries when threatened with unilateral actions?

What concerns are raised regarding overcapacity in Chinese advanced manufacturing?

How do tariffs affect trade and competitiveness according to economists?

What are the implications of broad-based tariffs on prices and firms?

What strategic approach has been taken regarding tariffs?