Maggie Lake Talking Markets Episode 50: Trade Talks & The Risks To US Treasuries. With Harry Melandri.
10 snips
May 9, 2025 Harry Melandri, a senior advisor at Arque Advisors and author of Respice Finem, dives into U.S.-China trade negotiations and the anticipated market reactions. He discusses the impact of proposed tariffs and the resilience of China's manufacturing sector, while highlighting supply chain vulnerabilities. The conversation also touches on global geopolitical tensions, particularly between India and Pakistan, and their implications for U.S. interests. Melandri concludes with insights into bond market complexities and their interplay with trade wars.
AI Snips
Chapters
Transcript
Episode notes
US Trade War Strategy Flawed
- The US administration's trade war approach aims to re-industrialize America for strategic independence from China.
- However, poor execution and underestimating domestic corporate vulnerabilities weakened their position.
Asian Supply Chain Stress
- Tariffs have strained Asia's integrated supply and payments chains causing liquidity issues.
- This stress has led to monetary easing across China and the broader region.
Tariffs Unify Asia Against US
- The US tariff strategy inadvertently united regional rivals like Korea and Japan with China.
- This creates a geopolitical advantage for China in Asia with unexpected alliances forming.