U.S. vows tough measures against countries abusing economic order

U.S. Treasury Secretary Janet Yellen on Tuesday said deeper trade ties among allies could help fight inflation and thwart China’s “unfair trade practices,” vowing to impose harsh consequences on those who abuse the global economic order.

Yellen made the comments in a policy speech in Seoul after touring the facilities of South Korean tech heavyweight LG Corp during the final leg of her 11-day visit to the Indo-Pacific region.

Yellen also took aim at Russia and continued to press for adoption of a price cap on Russian oil.

“Economic integration has been weaponised by Russia,” she said, decrying the impact of the war on supply chain vulnerabilities, as well as logjams and shortages that have driven prices higher around the world.

“We will impose harsh consequences on those countries that abuse or break that order, as we have demonstrated with our unprecedented response to Russia," Yellen added.