FIRST AIRED: July 11, 2018

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

×

Transcript

00:00:02
>> China says it's shocked now that the US has launched it's latest salvo war with Beijing. On Tuesday the Trump Administration threatened tariffs on an extra $200 billion worth of Chinese imports. Hours later on Wednesday, Beijing officials called that completely unacceptable, and warned they would be forced to respond.
00:00:21
>> I would like to stress that the United States behavior is typical trade bullying.>> Fears that trade clash could impact the world's economy rattled global markets on Wednesday. Asian and European stocks fell 1%, with Shanghai hit the hardest at 2%. However, if Beijing is to hit back, as Reuters' Tony Munroe explains, it may need to get creative to match tariffs on $200 billion worth of goods.
00:00:46
>> That is roughly twice the amount that China actually imports from the United States. So it's impossible for China to match those tariffs dollar for dollar. What it could do instead is increase the actual level of tariffs on imported items from the US that it is imposing tariffs on.
00:01:08
It could step up harassment, for lack of a better word, of US companies operating in China. We saw that with the way China dealt with South Korean companies, in particular Lotte, a while back. We could also see China possibly decreasing its holdings in US treasuries.>> The first shots fired in the trade war last week saw the US activate $34 billion worth of tariffs on Chinese goods, which Beijing then matched.
00:01:41
However, that mostly avoided consumer goods, the new list targets things like car tires, dog and cat food, and beauty products. President Donald Trump has said in the end he may slap tariffs on more than $500 billion worth of goods from China. For now, US officials said the latest list won't take effect for at least two months.
00:02:01
Giving businesses time to comment, giving the two sides time for a new round of talks.