The escalating trade dispute between the United States and China has, in the view of my guest today, unofficially crossed the threshold into a full-blown trade war. Wendy Cutler is Vice President at the Asia Society Policy Institute and a longtime diplomat and negotiator at the Office of the U.S. Trade Representative.

We spoke on Friday, April 18, as both countries were rapidly imposing tariffs and counter-tariffs, measures and countermeasures. In our conversation, Wendy explains which of these actions may prove particularly damaging to both the U.S. and Chinese economies. She also breaks down China’s diplomatic response, including a recent trip by Xi Jinping to three Southeast Asian countries aimed at shoring up regional trade alliances. Finally, Wendy offers insight into how bad this trade war could get—and identifies potential offramps that might help prevent the worst-case scenarios.`