Odd Lots
David Woo: What Trump Started is Worse Than a Trade War
Apr 24, 2025
David Woo, founder of David Woo Unbound and former head of global economics at Bank of America, shares his insights on the escalating U.S.-China tensions. He predicts that the real economic pain from tariffs is coming and argues it's more severe than a typical trade war. Woo explains the damaging 'war of attrition' impacting both economies and critiques the hardline approaches shaping trade relations. He highlights the political implications and discusses how these dynamics could hinder future negotiations as diplomatic trust erodes.
45:23
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Quick takeaways
- David Woo emphasizes that the ongoing economic conflict with China is deeper than a simple trade war, posing severe risks to both nations.
- The chaotic nature of the current U.S. administration complicates foreign relations and threatens to escalate tensions with China even further.
Deep dives
Impact of U.S.-China Relations on Market Sentiment
Optimism regarding U.S.-China relations surged recently following statements from Treasury Secretary Scott Bessent suggesting a possible easing of tensions. Such remarks have significant influence on market dynamics, heightening investor hopes for a resolution amidst ongoing trade disputes. The balance of power between the two largest economies remains critical, as both sides have much to lose from an escalation of the current trade war. Observers note that without a substantial agreement, market volatility may persist, reflecting the high stakes involved.
