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hello I'm Lauren Taylor a full-blown
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trade war between the world's two
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biggest economies the US and China seems
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even closer as President Trump threatens
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to impose further tariffs on China china
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says it will fight to the end after US
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President Donald Trump threatened to hit
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Beijing with an extra 50% tariff if it
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doesn't withdraw its retaliatory levy on
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Tuesday beijing's commerce ministry
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accuses the Trump administration of
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blackmail and says his tariffs are a
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typical unilateral bullying
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practice china's foreign ministry has
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held a news conference and said trade
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wars have no winners
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the US abuse of
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tariffs seriously infringes upon the
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legitimate rights and interests of
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countries violates WTO rules hurts the
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rules-based multilateral trading system
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and destabilize global economic order it
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is a typical move of
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unilateralism protectionism and economic
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bullying it is rejected by the whole
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international community china strongly
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deplores and firmly opposes this
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let me stress once again that trade wars
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and tariff wars have no winners and
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protectionism has no way out the Chinese
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people never create trouble neither do
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we fear trouble pressuring threatening
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or extorting China is not the right way
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to engage with us china will do what is
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necessary to firmly safeguard our
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legitimate and lawful rights and
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interests if the US insists on waging
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the tariffs war and trade war regardless
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of the interests of both countries and
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the international community China will
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play along to the
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end i speak to our correspondent in
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Beijing Steven McDonald so some strong
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language there how big an impact is
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China expecting if this does continue
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into a full-blown trade war
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well I think they know what's going to
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happen but the Beijing you know the
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government in Beijing has decided it
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can't stand down it can't ignore these
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threats from Donald Trump which they've
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labeled as blackmail i mean the
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government here has said that the idea
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that Donald Trump's tariffs are
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reciprocal is ridiculous instead saying
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they're the act of a bully and they've
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threatened their own counter measures
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yet again if Donald Trump makes good
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with his threats so how might things pan
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out over the next couple of days well
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today is the deadline imposed by Donald
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Trump for the Chinese government to
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withdraw its last round of tariffs on US
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goods which were in response to the last
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round of tariffs from Donald Trump well
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clearly the Chinese government is not
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going to back down on that so we move
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forward to the next
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stage another 50% tariffs imposed on all
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Chinese goods going into the US that
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makes it
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104% tariffs on all Chinese goods going
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into the US that's absolutely enormous
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then we're going to have another
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response from China which again is going
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to spook the markets again is going to
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hit every single US company that wants
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to sell into this huge market here but
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you know what might that sort of Beijing
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response be we don't actually know yet
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however there is one Shininoa journalist
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who you know on his private uh social
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media post said you know this is someone
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with good connections in the Communist
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Party that he expects the response could
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be along the lines of significant tariff
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increases on US agricultural products so
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that's soybeans and sorghum a complete
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ban on US poultry from entering China
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suspending US um China cooperation on
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the fentinel crisis and if you can
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believe it banning the import of all US
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movies into China so you know it's just
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going to keep getting ratcheted up and
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up it seems until there can be some sort
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of a breakthrough and you mentioned the
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effect on the markets that China's also
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been trying to have some measures in
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place to shore up the markets hasn't it
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yeah well you know yesterday was a
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complete bloodbath here especially in
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Hong Kong which saw its biggest drop
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since 1997 i mean that far back now
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today the Chinese government has
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intervened using its you know various
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companies that it controls including a
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sovereign wealth fund to buy up shares
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and that's propped the market up a bit
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and it's sort of gone up and down but
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certainly not gone through the floor
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again as it may have happened if they
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hadn't intervened however even with the
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deep pockets of the Chinese government
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you'd have to think that this might just
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be a temporary fix and if the trade war
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keeps worsening on and on that they're
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not going to be able to keep propping
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things up in this way steve McDonald
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thank you very much indeed
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president Trump has insisted he has no
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plans to suspend his tariffs saying they
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were having the desired effect and the
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United States would end up the winner
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our North America correspondent David
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Willis
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reports the closing bell on Wall Street
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marking the end of another torid day of
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trading the S&P 500 index rebounded
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briefly on suggestions the US was about
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to hit the pause button on its trade
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tariffs only to fall again when the
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rumor proved to be false the DAO also
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finished down nearly 350 points pausing
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it seems isn't part of the plan flanked
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by the Israeli Prime Minister Benjamin
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Netanyahu Donald Trump threatened
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further tariffs on China if it failed to
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drop its retaliatory measures against
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the US such a move would subject Chinese
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imports to levies of
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104% the only solution said the
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president was a trade deal on terms
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considerably more favorable to the US we
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have $36 trillion of debt for a reason
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and uh the reason is that people allowed
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it to get that way so we'll be uh
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talking to China we'll be talking to a
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lot of different countries and I think
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you know if if if we can make a really
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fair deal and a good deal for the United
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States not a good deal for other this is
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America first it's now America first the
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global response to Mr trump's Liberation
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Day tariff announcement has been
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unequivocal since last Wednesday
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trillions of dollars have been wiped off
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share prices as America's key trading
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partners have mowled their response for
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its part China also insists it isn't
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backing down following Mr trump's threat
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of tariffs on top of tariffs it accused
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the United States of blackmail and
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economic bullying a foreign ministry
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spokesman said China had vowed to fight
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the tariffs to the end but amid growing
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warnings of a possible recession some in
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Donald Trump's inner circle are starting
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to express disqu posting on X the
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leading hedge fund manager and Donald
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Trump cheerleader Bill Aman called for a
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90-day pause in the imposition of
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reciprocal tariffs that are due to come
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into effect tomorrow warning that
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without it the United States could be
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facing what he called a self-induced
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economic nuclear winter that you are
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negotiating with baseline 10% tariffs
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already in place on all imports into the
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US the trade secretary was asked was
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there any way the UK could escape the
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existing trade relationship is a strong
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one a fair one a balanced one i believe
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we can make that deeper go further on
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both sides and I believe that should be
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based on removing tariffs right so is
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that a red line for you that I cannot
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negotiate for something that doesn't
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deliver an improvement in our terms of
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trade traders in Asia were holding their
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breath as the markets opened there amid
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warnings that the effects of a global
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trade war involving the world's two
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largest economies could soon start to
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spread david Willis BBC News our Asia
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business reporter Muka Oi is in
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Singapore and has the latest market
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reaction from there it was a much calmer
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day with most Asian stock markets
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managing to make some recoveries
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including Japan's Nikay 225 ending the
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day more than 5% higher other stock
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markets including South Korea Australia
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Hong Kong even mainland China where
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there are fears of that escalating trade
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war with Washington share prices managed
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to rise there are stock markets where we
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saw further losses though including in
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Taiwan and also in Indonesia which was
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shut for a public holiday on Monday it's
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also important to emphasize that just
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because we saw this recovery that does
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not mean that investors think that it's
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all back to normal there are still
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concerns over those escalating tensions
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especially between the world's two
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biggest economies and economists are
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still warning that these tariffs could
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possibly push up prices in the United
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States pushing it and possibly even a
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global economy into a recession but at
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least for now trading has calmed down
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and that's because the stock market
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represents what investors think these
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companies are worth and what their
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future profits may be and because of the
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impact of those latest tariffs on their
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future profits that's why we saw that
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sell-off but now shares are trading at
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the level where investors think uh is
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appropriate with me is our business
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presenter Sally Bandock and Sally
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there's been a bit of a rebound in some
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areas bring us the very latest on on the
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reactions and markets to this latest
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escalation in the US China trade war yes
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well across Europe we're seeing a very
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similar picture to what happened in Asia
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that Marico's just outlined so a bit of
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a rebound a bit of a rally is too strong
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a word it's not a rally but a little bit
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of recovery compared to the losses we
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saw across Europe yesterday so this time
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yesterday it was heavy heavy losses all
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the way across Europe in London down 5%
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France six Germany much more they all
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ended the day around 4% lower so today
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they're all hovering around a percent
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higher so they've not quite recovered
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the ground they lost um and it marks the
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end what's going on in Asia and Europe
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today of a threeday market route which
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is a little bit of a relief but it's
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calm but doesn't mean the storm has gone
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away by any means as you have been uh
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telling our viewers you know the spat
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between China and the United States has
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really intensified the war of words is
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hoting up and at the moment no one is
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blinking so that's the problem for
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markets they don't know what's going to
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happen next they've got no clarity in
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what's ahead head and that's why uh
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people are very nervous and for for
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ordinary people what do these
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uncertainties on the markets translate
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into well on financial markets um unless
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they're actually going to cash in their
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shares or start using their pension
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today it's not an issue because of
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course for most people their pensions
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are impacted by what's going on at the
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moment but if that's a long-term
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investment you're not retiring for
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several years to come you should see
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some upside and some recovery and the
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investments for long-term usually see
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some gain so that's the positive and the
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optimistic view on this but of course if
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you are going to cash in stocks and
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shares right now or move money around
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today you've got to think very wisely
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about what you're going to do with that
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because of course the losses are still
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pretty grim and how does all this
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compare this particular kind of wave of
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uncertainty and and markets falling like
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this or or volatility anyway how does it
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compare with say the COVID crisis or the
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financial crisis of 2008 yeah I mean I
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was working here during both those huge
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events seismic events i mean the
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financial crisis of 2008 um we saw
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countries going bankrupt we saw huge um
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investment houses like Lehman Brothers
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uh collapse and we saw governments
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having to bail out uh banks and all
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sorts it was a it was a seismic event
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there was a credit crisis and it
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triggered a global recession markets
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were hit heavily at that time but the
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intensity of the volatility then was
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fullon it seemed compared to say this
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time yesterday when I saw Germany
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falling by at one point nearly 10% we
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didn't see that kind of intense
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knee-jerk uh reaction and it was the
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same with the global pandemic it was
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more of a gradual process of decline
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with the global pandemic as it became
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more clear what was going on and
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countries were locking down and that
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kind of thing and so now we're watching
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what I mean various some countries have
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said what they're going to do but not
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all of them so I suppose that's going to
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determine what happens next and how this
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goes absolutely so today for financial
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markets in Europe and of course later in
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the United States in the United States
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later when Wall Street opens it's
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expected they will open slightly up as
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well as as we're seeing currently in
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Europe but markets and traders will be
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watching every bit of news very closely
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about any negotiations going on so for
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example in Japan today we saw almost a
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recovery in Japan on what it lost on
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Monday and that was on the news that the
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prime minister of Japan has been saying
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that he's been on the phone to President
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Trump and the negotiations between Japan
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and the US will start very very soon on
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trade so that little bit of optimism
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caused the main market in Japan to go up
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quite significantly today and that's
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kind of what we'll be seeing it's very
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sort of volatile swift reactions to good
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news or bad news um about what's
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happening with regard to trade relations
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sally Book thank you very much indeed
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for your analysis there thank you
