China and the United States are locked in an unprecedented trade war, with each imposing tariffs of more than 100% on the other’s imports. On this episode of WashingtonWise, host Mike Townsend is joined by Jeffrey Kleintop, Schwab’s chief global investment strategist, for an in-depth discussion of the trade war’s implications for investors, companies, consumers, and the economies of both countries. They discuss which parts of the U.S. economy are likely to be most affected, how quickly companies can relocate production and supply lines, and whether the goal of moving manufacturing back to the United States is achievable. They also touch on how China is avoiding tariffs, the implications for Taiwan’s critically important semiconductor production, and whether there is an endgame that allows both countries to declare victory. And Jeff shares his insights on where global investors can find opportunities.

Mike also provides updates on the challenges that await Congress as lawmakers move to the next stage of crafting a massive bill of tax cuts and spending cuts, the latest on the debt ceiling deadline, and the escalating tensions between President Trump and Federal Reserve Chair Jerome Powell over interest rates and economic policy.

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China Trade War: A Fight With No Winners

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