0:00
trump says he's not backing down on
0:02
trade tariffs and China says it will
0:04
fight to the end all the while both
0:06
sides are threatening each other with an
0:08
escalating series of trade levies
0:10
essentially two multi-trillion dollar
0:13
economies playing a big game of economic
0:15
chicken to understand what's going on
0:17
it's probably worth going a week back to
0:20
get the full timeline of these levies
0:22
because they've all become a bit
0:23
convoluted first off last Wednesday
0:26
Trump stands up in the Rose Garden at
0:28
the White House and gives his now
0:29
infamous speech announcing his package
0:32
of global tariffs he slaps an extra 34%
0:36
levy on China that's in addition to an
0:39
existing 20% so 54% total he claimed at
0:43
the time that China was ripping the USA
0:45
off with so-called tariffs charged to
0:47
the USA done by his own White House
0:49
calculations and then to make matters
0:52
more dramatic China respond with their
0:54
own like for-like 34% retaliatory
0:57
tariffs on the US imports china's
0:59
Ministry of Commerce said at the time
1:01
"The US practice is inconsistent with
1:03
international trade rules seriously
1:05
damages China's legitimate rights and
1:07
interests and is a typical unilateral
1:10
bullying practice." In response to this
1:12
Trump warned on Friday "China played it
1:15
wrong they panicked and it was the one
1:17
thing they could not afford to do."
1:19
Trump has since hit back calling these
1:21
retalitary tariffs abuse of the US and
1:24
has threatened to cut off all trade
1:26
negotiations with China and this week
1:29
the US president is threatening to chuck
1:31
an extra 50% extra tariffs on top of the
1:34
existing levies that would bring the
1:35
total to more than 100% china's Ministry
1:38
of Commerce has called these extra
1:40
threats blackmail and has promised to
1:43
resolutely take counter measures and
1:45
some economists are predicting that if
1:47
there is a dramatic breakdown in US
1:49
China trade UK consumers could end up
1:51
benefiting so the market could be more
1:54
full of cheaper goods but this could
1:56
hurt UK businesses if essentially
1:58
they're having to compete with an influx
2:00
of goods from China so Trump might have
2:03
hoped that he could use these tariffs as
2:04
a blunt instrument to force through
2:07
trade policy on his own terms but in an
2:09
increasingly multi-olar world there are
2:12
economies such as China who are willing
2:14
to bite back and for everything you need
2:16
to know about this story as it develops
