the uk government has a plan to tackle economic inactivity, but will it actually work? french farmers stage renewed protests against a free trade agreement between the eu and four latin american countries. plus, have you wondered what the world will look like in a century? it's a museum experience in london, thanks to augmented reality. live from london, this is business today. i'm lukwesa burak. and we start in the us, where, as you may have heard, in the last few hours, donald trump has said he will hit china, mexico and canada with new tariffs on day one of his presidency. in a post on social media, mrtrump said the new tariffs will come

on top of levies of up to 60% pledged on his campaign trail. mariko oi is following the story from our asia business hub in singapore. please just take us through the details. it sounds as if he is going to deliver on his promises.— going to deliver on his romises. ., promises. indeed. he did allude to this during — promises. indeed. he did allude to this during the _ promises. indeed. he did allude to this during the election - to this during the election campaign, didn't he? but on social media, the president elect is specifying that the alleged inflow of drugs from china into the united states like fenta nyl china into the united states like fentanyl as the reason for these high tariffs. the biden administration has been calling on beijing to do more to stop the production of ingredients used in fentanyl, because washington estimates it has killed almost 75,000 americans last year. mr trump attacked beijing for failing to follow through on promises he said

chinese officials made to carry out the death penalty for people caught dealing fentanyl. a spokesperson for the chinese embassy in washington told the bbc the idea of china knowingly allowing fenta nyl to flow into the us runs completely counter to facts and reality, adding that china and us trade co—operation is mutually beneficial and that no one would win a trade or tariff war. the trade war with china started during his first term, and the biden administration basically kept those tariffs. 0ver eight years, according to some estimates, those tariffs cost china nearly $80 billion. during his election campaign, mr trump said during his election campaign, mrtrump said he during his election campaign, mr trump said he would impose much higher tariffs of more than 60% on all chinese made products. the announcement today, if confirmed, will be on top of that 60%. mr trump also

announced 65% tariffs on mexico and canada, until they clampdown on drugs and migrants illegally crossing the border, he says. if he follows through with the threats, it marks a major escalation in tensions with america's three biggest trading partners.— trading partners. thank you very much- _ but, how will markets react to this? anna macdonald is investment manager at aubrey capital management and joins me now. welcome to the programme. are the markets liking all of this? well, the early signs are not particularly. us dollarfurther this morning. against the main currencies affected, we can see the canadian dollar has fallen to a four—year low. the mexican peso, already pretty weak this year, has fallen also. down about 20% in the year to date. gold has steadied. remember, there was quite a bump up

yesterday because of the appointment of the treasury secretary scott bessent, seen as market friendly. so there could be a bit of profit—taking. i could be a bit of -~rofit-takin. ., , ., profit-taking. i wonder if you could explore _ profit-taking. i wonder if you could explore the _ profit-taking. i wonder if you could explore the reasons i profit-taking. i wonder if you could explore the reasons as| profit-taking. i wonder if you i could explore the reasons as to why the market don't like it? there has been talk of inflation rising possibly in the us because of increased prices. i mean, the tariff cost is going to have to be absorbed somewhere, isn't it?— somewhere, isn't it? yes, tariffs have _ somewhere, isn't it? yes, tariffs have generally - somewhere, isn't it? yes, tariffs have generally for l somewhere, isn't it? yes, i tariffs have generally for the last 100 years also been seen as pretty harmful. they are not as pretty harmful. they are not a key raiser of government receipts like they used to be. trump has no view that tariffs are wonderful and they encourage domestic manufacturing and they will reduce trade deficits and raise revenue, but the market don't see it that way. they worry about inflation. the federal reserve is data dependent, so it will react to the current pressures they are seeing regarding inflation. it won't be trying to look at how these

tariffs will affect future trade. but the markets of course will think that interest rates will remain high in the us and that will keep the us dollar strength.— us and that will keep the us dollar strength. there has been talk that president _ dollar strength. there has been talk that president elect - dollar strength. there has been talk that president elect trump| talk that president elect trump is doing this to leverage one country against the other, a negotiating tactic. how long is the feeling that these tariffs will be put, or kept in place? the markets don't like uncertainty.— the markets don't like uncertainty. the markets don't like uncertain . , , uncertainty. they don't, but the one thing _ uncertainty. they don't, but the one thing they - uncertainty. they don't, but the one thing they know- uncertainty. they don't, but | the one thing they know with trump is they are going to get lots of uncertainty. it's how he operates, it's a bit like punching first and negotiating afterwards. hopefully these tariffs won't stay in place too long. it's going to be really hard to predict that. it's certainly very difficult for a country to respond in that time, for example to build up a manufacturing base in the us if they don't already have one. it will be a negotiation tactic, and hopefully these tariffs don't stay at those levels also

long. don't stay at those levels also lonu. �* , , don't stay at those levels also [on i _ �* , , ., don't stay at those levels also lonu. long. it's been a pleasure, thank yom _ long. it's been a pleasure, thank you. -- _ long. it's been a pleasure, thank you. -- don't - long. it's been a pleasure, thank you. -- don't stay . long. it's been a pleasure, | thank you. -- don't stay at those levels _ thank you. -- don't stay at those levels for _ thank you. -- don't stay at those levels for long. - here in the uk, the government is promising major reforms in order to reduce the benefits bill by getting more people into work. under the banner get britain working, the plans include a £2110 million investment to overhaul the current network ofjob centres across britain, and more funding for mental health services. economic inactivity has grown rapidly since the pandemic. there are now 9.3 million people who are neither in work nor looking for a job — that's a rise of 713,000 since the pandemic. well, 20—year—old hassan, from birmingham, finished his a—levels in 2022 and has been out of work since. his poor mental health in his final year at school meant he delayed his univeristy application, and now with the rising cost of tuition

fees, he's uncertain if further education is the right path for him. after leaving an environment where you are under 18, you are in college, you know, you need anything, people help you. to suddenly being, 0k, anything, people help you. to suddenly being, ok, i need to get a job and i don't know how, and i've never had experience... it was constantly, like, you put in applications and never hear anything back. it builds up and you completely lose confidence in your ability to get a job. you lose confidence in your ability to do things that you were once able to do. you kind of lose touch with yourself. the experience of the student hassan. joining me now is neil carberry, ceo of the recruitment and employment confederation. welcome to the programme. before we talk about this

proposed plan by the uk government, what strikes you listening to hassan telling his personal story? listening to hassan telling his personalstory? i listening to hassan telling his personal story?— personal story? i think the most obvious _ personal story? i think the most obvious thing - personal story? i think the most obvious thing is - personal story? i think the most obvious thing is the l most obvious thing is the necessity of greater support in the transition from school and couege the transition from school and college into work and further study. that's something improving across england gently in the last few years but there's a lot to do. interesting to see the government really going for that in the white paper today with the jobs guarantee for 18 to 21—year—olds. with the jobs guarantee for 18 to 21-year-olds._ with the jobs guarantee for 18 to 21-year-olds. what can you tell us about _ to 21-year-olds. what can you tell us about this _ to 21-year-olds. what can you tell us about this plan? - to 21-year-olds. what can you tell us about this plan? it's . tell us about this plan? it's going to be reported later today, but what more can you tell us? ~ ., , tell us? we got stuck in the last few years _ tell us? we got stuck in the last few years in _ tell us? we got stuck in the last few years in kind - tell us? we got stuck in the last few years in kind of - tell us? we got stuck in the last few years in kind of a i last few years in kind of a debate around benefits, that's about sanctioning people who don't look for work or don't take thejob. this report don't look for work or don't take the job. this report goes a bit deeper. we know sanctions

don't really work. it does some sensible things in terms of localising support, looking to draw together different agencies, and making job centres more responsive. the big challenge, though, is how little it has to say about the private sector. while the nhs, which the plan leans on for employment support as well as health, is the country's biggest employer, most sustainablejobs are biggest employer, most sustainable jobs are delivered by the private sector, so that's going to be really important. we like to see more from the government on that. why do you think they haven't specified that in the report to the extent that you think would be beneficial? why not? if the extent that you think would be beneficial? why not?- be beneficial? why not? if you look at a job — be beneficial? why not? if you look at a job centre, _ be beneficial? why not? if you look at a job centre, language | look at a job centre, language from government is they want employers to look for people through the job centres, absolutely they should do that, but the truth is we run a programme that puts young

people into work, the long—term unemployed, into work through my organisation. we find the final mile is best done by private sector employment agencies, private sector employers. making sure they are properly engaged really matters. i don't think it's a lack of will, it's about how the plan hits the ground when it reaches job centres across the country, especially in local areas.— the country, especially in localareas. �* ., ., local areas. i'm going to come back to the — local areas. i'm going to come back to the job _ local areas. i'm going to come back to the job centres, - back to the job centres, because listening to hassan there, like you said, fundamental... i don't know how to get a job. is there something about the environment todayis something about the environment today is my it's very confusing, particularly the older generation, where do i start? arejob centres older generation, where do i start? are job centres fit for purpose? i start? are 'ob centres fit for purpose?— start? are 'ob centres fit for --urose? ~ . , ., purpose? i think the quality of service in _ purpose? i think the quality of service in job _ purpose? i think the quality of service in job centres - purpose? i think the quality of service in job centres varies i service in job centres varies widely across the country. they have for a few years been mainly benefit payments agencies. they need to become what we would call labour exchanges, where people go to look for work. to be working

with private sector employers and private sector employment agencies to do that. making sure the support is there, particularly for young people, making sure they know how to access it is important. but there is something else. job search looks massively different today compared to 15 or 20 years ago. that's why i would encourage anyone looking for a job to go and talk to their local employment agency. because there is a source of advice in the private sector as well. �* , ., ., ., ~ advice in the private sector as well. ., ., ~ ., well. are they aware of ai and the impact — well. are they aware of ai and the impact in _ well. are they aware of ai and the impact in job _ well. are they aware of ai and the impact in job searches? i the impact in job searches? that's what it's all about at the moment.— that's what it's all about at the moment. it's definitely a case that _ the moment. it's definitely a case that what _ the moment. it's definitely a case that what we _ the moment. it's definitely a case that what we are - the moment. it's definitely a j case that what we are seeing the moment. it's definitely a i case that what we are seeing is a flurry of applications, because people use ai a flurry of applications, because people use al to apply, and it's being used as a short listing tool. still quite a small share of companies doing that. people are being quite cautious about adoption. but it does speak to the necessity of keeping the human factor, and

that what both job centres and recruitment agencies will be looking to do. the other thing that's really important here is making sure we encourage companies to create the jobs that these people can take, often entry—level and low skills, and i'm afraid to say that the national insurance rise in the budget particularly targets those first stage hires. that will be a bit of a brake on the government's plans. brake on the government's lans. �* , , brake on the government's lans. fl, ., plans. it's been fascinating, thank yom _ plans. it's been fascinating, thank you. food _ plans. it's been fascinating, thank you. food for - plans. it's been fascinating, | thank you. food for thought. french farmers are continuing their protests against the eu—mercosur free trade agreement — a customs union covering argentina, brazil, paraguay and uruguay — which has been 20 years in the making. 1528