Yale's Roach Warns of U.S.-China Trade War Risks

The transcript discusses the economic relationship between the US and China, highlighting America's reliance on China's savings and cheap goods. It critiques the rigidity in US policy, particularly under the influence of Peter Navarro, and explores potential reactions from China, including tariffs and capital restrictions. The discussion also touches on historical parallels, such as the Smoot Hawley tariffs, and the risk of a recession due to strained US-China relations.

In what ways might China respond to aggressive U.S. trade policies?

What historical events are referenced to illustrate the potential consequences of tariffs?