As U.S. President Donald Trump reinforces his aggressive tariff policies against major trading partners, a wave of opposition is rising from across the American political and economic landscape. Former Vice President Kamala Harris, former Treasury Secretary Janet Yellen, state governors, and numerous business groups are voicing their concerns, warning that these tariffs are sowing economic uncertainty and could steer the country toward a recession.
In her first major speech since the 2024 presidential election, which she lost to Trump, Kamala Harris addressed a crowd in San Francisco on Wednesday. She criticized Trump’s tariff policy as “reckless,” labeling the trade war as “the greatest man-made economic crisis in modern presidential history.” Harris argued that the administration is relying on fear tactics, stating, “They are counting on the notion that if they can make some people afraid, it will have a chilling effect on others.”
Harris highlighted the impact of the tariffs on American families and businesses, asserting that they have “hurt workers and families by raising the cost of everyday essentials” and are “paralyzing American businesses, large and small, forcing them to lay off people, stop hiring, or pause investment decisions.” She added, “The tariffs, as I predicted, are clearly inviting a recession.”
Meanwhile, Janet Yellen, former Treasury Secretary and Federal Reserve Chair, echoed these concerns in an interview with the Financial Times on Thursday. She warned that Trump’s sweeping levies on trading partners increase the risk of a recession. “(The tariff strategy) will have tremendously adverse consequences for the United States, for consumers, for the competitiveness of firms that rely on imported inputs,” Yellen stated, noting that about 40 percent of imported goods are inputs for domestic production.
Yellen also pointed out the potential damage to the U.S. clean energy sector, given its reliance on critical minerals from the Chinese mainland used in technologies like batteries. “By putting enormous tariffs on them, I think we potentially hobble industries that could have a chance,” she said.
In response to the tariffs, California took the lead in April by filing a lawsuit challenging Trump’s authority to unilaterally enact them, claiming it is unlawful and has brought chaos to the American economy. Soon after, a coalition of a dozen states, including Oregon, Arizona, Colorado, and New York, joined the legal battle against the administration’s tariff policy. Arizona Attorney General Kris Mayes called the tariff scheme “insane,” describing it as “not only economically reckless but also illegal.”
The U.S. Chamber of Commerce also urged the Trump administration to implement a “tariff exclusion process” to prevent the economy from sliding into a recession. In a letter to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer, the Chamber requested the automatic lifting of tariffs on all small business importers and products that “cannot be produced in the U.S.” CEO Suzanne Clark expressed concern that without swift action, “many small businesses will suffer irreparable harm.”
The escalating trade tensions are affecting businesses globally, particularly in sectors tied to manufacturing and physical goods. Industries are facing rising production costs, which suppress consumer demand and reduce corporate profits, creating a cycle that exacerbates unemployment risks and hinders global economic growth.
