Yellen Says Nothing "Off The Table" In Response To Overcapacity

MNI London: Treasury Secretary Janet Yellen told CNN yesterday that the US wouldn’t take “anything off the table" - including new tariffs - in response to China’s manufacturing overcapacity.

• Yellen said: “We’re concerned about the possibility of surges in Chinese exports to our markets in areas where they have a great deal of overcapacity. I’ve been very clear in my discussions with them that this is a concern not only to us, but also to other countries, to Europe, to Japan, and even to emerging markets. India, Mexico, Brazil.”
• When asked if additional US tariffs could be pursued, Yellen said, “I wouldn’t take anything off the table as a potential response. But we really want to responsibly manage this relationship."
• Milton Ezrati at Vested notes that Yellen "asked Beijing to restrain its global ambitions on green energy products or face U.S. tariffs on Chinese-made electric vehicles (EVs)," during her recent trip to China.
• Ezrati writes: "There is a chance that even denied voluntary restraint, Washington could hold off on the threatened tariffs. The Biden administration has backed away from threats — economic and diplomatic — before this. But chances are this would not be one of those times. The United States seems set to impose the threatened EV tariffs. It would have little trouble getting such legislation through a Congress that has already shown considerable anti-Chinese animus."