The Julia La Roche Show #260 David Woo: Stock Market Making "Huge Mistake" On Trade War - Next 6 Weeks Are Going To Be Scarier
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May 24, 2025 
David Woo, CEO of David Woo Unbound and a former top strategist at Bank of America, dives into the complexities of the current trade war between the U.S. and China. He discusses tariffs, potential outcomes for major tech companies, and the need for cautious investment strategies. Woo also critiques geopolitical tensions, particularly the impacts of the Russia-Ukraine conflict on the market. His insights include how to navigate uncertainties in global trade relations and the effectiveness of sanctions in today's landscape.
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Trump's Tactical Trade War Moves
- Trump's tariff rollback on China was a tactical retreat to buy time, not a strategic surrender.
- His subsequent aggressive stance signals a return to trade war escalation once other issues settle.
Trade War Rooted in Twin Deficits
- Trump's trade war is a response to the massive US twin deficits inherited from Biden.
- Like the Plaza Accord in the 1980s, tariffs serve to adjust relative prices and protect US economic interests.
Stay Defensive Amid Trade Risks
- Investors should get defensive as trade war escalation risks hitting vulnerable sectors like Apple and retail.
- Apple's business model makes it very exposed to tariffs affecting China manufacturing and US sales.