Episode Notes:

Following tweets from earlier in the week, President Trump today announced that the U.S. would raise tariffs on $200 billion of worth of Chinese goods tomorrow as well as begin the process to tax nearly all of China’s imports.

Brad Setser, the Steven A. Tananbaum Senior Fellow for International Economics at the Council on Foreign Relations, joins the Warcast to discuss the developing situation. (~12 minutes)

[ 0:17 ] Introduction
[ 0:49 ] The anatomy of the conflict and how this changes it
[ 3:09 ] U.S. goals and the choice of intensification
[ 5:45 ] The impact of tariffs on the Chinese government
[ 9:58 ] Dynamics of the negotiations going forward

Twitter: @Brad_Setser