Treasury Secretary Says Market Turmoil Stemming from Tech Bubble Burst, Not Trump's Trade Policies

Treasury Secretary Janet Yellen says market woes are more about tech stock sell-off than Trump's tariffs

April 2, 2025 - Treasury Secretary Janet Yellen said on Thursday that the recent market woes are more about a sell-off in tech stocks than the tariffs imposed by the previous administration under President Donald Trump.

The Dow Jones Industrial Average has fallen over 1,000 points in the past two trading sessions, with the S&P 500 and Nasdaq also experiencing significant declines. The sell-off has been attributed to a range of factors, including concerns over the economic impact of the coronavirus pandemic, the potential for higher interest rates and the ongoing trade tensions between the U.S. and China.

However, Yellen said that the tariffs imposed by the Trump administration, which increased duties on $360 billion worth of Chinese goods, are not the primary cause of the market downturn.

"I think it's important to separate the impact of tariffs from the impact of the sell-off in tech stocks," Yellen said in an interview on CNBC. "The tariffs are certainly a factor, but I think the bigger factor is the sell-off in tech stocks."

Yellen's comments came as investors are growing increasingly concerned about the impact of the tariffs on the U.S. economy. The tariffs have led to higher costs for American consumers and businesses, and have also sparked concerns about the potential for a trade war with China.

The Treasury Secretary noted that the U.S. economy is still experiencing strong growth, and that the tariffs are not having a significant impact on the overall economy.

"I think the economy is doing well, and I think the tariffs are not having a significant impact on the overall economy," Yellen said. "But I do think it's important to recognize that the tariffs are having an impact on certain industries and certain companies."

Yellen's comments were echoed by other analysts, who noted that the sell-off in tech stocks is a major factor in the market downturn.

"The sell-off in tech stocks is a major driver of the market decline," said Mark Freeman, a portfolio manager at Fidelity Investments. "The tariffs are certainly a factor, but I think the bigger issue is the uncertainty surrounding the tech sector."

The market downturn has sparked concerns about the potential for a recession, but Yellen and other analysts have noted that the U.S. economy is still experiencing strong growth.

"I think the economy is doing well, and I don't think we're headed for a recession," Yellen said. "But I do think it's important to recognize that the market is always subject to volatility, and that we need to be prepared for any eventuality."