with the pace of inflation. will the uk government change the electric vehicle sales rules? car makers blame them for factory closures and job losses. also in the programme: how the thick smog in india's capital city is affecting businesses. live from london this is business today. canada and mexico have hit back with hints of retaliation in response to president—elect trump's promise of punitive trade tariffs imposed on both countries on the day he takes office. the canadian dollar hit a 4—year low and the mexican peso also slumped in value as markets weighed up the cost of 25% levies on canadian and mexican exports to the us. trump says the tariffs will remain in place until there is a clamp down

on illegal immigration. mexican president claudia sheinbaum warned trump that tariffs would disrupt the us economy and us companies in mexico, while urging for dialogue. translation: what we're saying is this will affect _ translation: what we're saying is this will affect the _ translation: what we're saying is this will affect the us _ is this will affect the us economy and american companies that have been here in mexico for 80 years, it's better to have a dialogue and come to an agreement on these issues and others that are relevant. let's discuss the latest developments with tom stevenson, investment director at fidelity. hello to you. trump vowing to go in hard and fast on tariffs. 25% on all canadian and mexican goods will have a big impact on both countries presumably and us consumers?—

us consumers? yes, and the markets _ us consumers? yes, and the markets are _ us consumers? yes, and the markets are pretty _ us consumers? yes, and the markets are pretty relaxed . markets are pretty relaxed about the latest tariff wall that has blown up in the last couple of days. they are looking through it i think that ceasefire in between israel and lebanon has been higher on their minds, the geopolitical tensions easing but coming back to the trade tariffs i think markets are relaxed because i don't think they doubt whether there going to happen as per trade. the reality as the mexican leader pointed out, possibly the biggest victim of the tariffs would be the us consumer. the us imports 40% of its oil, 60% of that comes from canada on the mexican side, many us companies are very intertwined with the mexican carmakers, ford, general motors. this is not without

consequences for the us consumer and inflation. consequences for the us consumerand inflation. donald consumer and inflation. donald trump consumerand inflation. donald trump will have a very key eye on that, you will not push through something that will raise inflation and damage the us consumer. i think people feel that this is, his sparkle be worse than his bite, it is a bit of bluster here and this is a negotiating ploy. ithink tying it to immigration and drugs is an indication that this really is to an extent posturing and not really about trade policy. posturing and not really about trade policy-— trade policy. and china also was in the _ trade policy. and china also was in the frame, _ trade policy. and china also was in the frame, as - trade policy. and china also was in the frame, as it - trade policy. and china also. was in the frame, as it were, in the social media post that donald trump did earlier this week. europe must be watching with a lot of caution to see how this pans out? absolutely. i think on _ how this pans out? absolutely. i think on the _ how this pans out? absolutely. i think on the china _ how this pans out? absolutely. i think on the china front, - i think on the china front, there was an element of relief in the market because the numbers that have been put about 60% tariff, actually what was mentioned was a 10% tariff so i think there was a degree of relief about that but you

are right, europe is the one area which is not being mentioned so far and we did see a sharp falls in the share prices of european carmakers because willie having brought canada, mexico and china into the picture —— clearly europe must feel it is next. the picture -- clearly europe must feel it is next.- the picture -- clearly europe must feel it is next. thank you very much _ must feel it is next. thank you very much indeed, _ must feel it is next. thank you very much indeed, tom - must feel it is next. thank you - very much indeed, tom stevenson from fidelity. let's show you quickly the close of trade on wall street as tom was saying as far as chair markets are concerned they look through this trade spat or potential trade war kicking off between the us, canada, mexico, china etc and there were looking beyond that federal reserve minutes that came to later in the day billy helped boost share markets. we will talk about that later on in the programme but as sang there. china is also facing fresh tariffs slapped on its exports to the us

and is braced for a fractious trade relationship with the worlds biggest economy now that trump is about to take office. top us ceos including apple boss tim cook are in beijing for the annual china international supply chain expo. they are discussing how multinationals�* complex supply chains will be impacted by trump 2.0? the chinese electric car giant byd is in talks to build a major plant in mexico — but is wary of being accused of using mexico as a �*back door�* into the us market. toyota and honda already use mexico as a base to export to the us — but as we've been hearing trump has promised tariffs on goods headed to the us from mexico. so how is that likely to pan out now? i'm joined byjeff moon — president of china moon

strategies and former assistant us trade representative for china. jeff, what do you think will happen with regards to cars made in mexico going into the us via various companies who are based there?— us via various companies who are based there? well, the auto industry within _ are based there? well, the auto industry within the _ are based there? well, the auto industry within the three - industry within the three countries in north america is very well integrated already, there is already the order supply chain. to the extent, however, that china for example wants to import evs into the united states by rewriting its supply chain through mexico, that i think that is new tariffs may address some of that to a certain extent. this will make it difficult for the chinese to make plans for a byd plant, for example, until they know exactly how much the tariffs are going to be and when they will start, what else they may cover. this

complicates their business plans significantly. and another thing that is important about the order supply chain is that in 2026, the us mexico canada agreement was up for reconsideration or renegotiation. 0ne reconsideration or renegotiation. one of the main topics discussed in the united states is the rules of origin, thatis states is the rules of origin, that is the rules that define where a good is determined to come from. and i think a lot of people were thinking about how china may be affected by any changes in rules of origin. it changes in rules of origin. it is so complicated, isn't it? for tim cook in beijing right now apple has huge operations in china, it's a very important market for apple. your thoughts on other big us ceos in china currently about what our thinking and how they will navigate a trump presidency? the expo is an annual event in a state led economy when the government says you ought to attend this expo than people

show up stop it is determined to be a measure of how committed people to the china market. there's very little policy that happens here, this is largely ceremonial. in the past when china was a growing economy, that was enough to keep investors coming. now there's less investor interest in china and the economy is struggling and the government is still treating the situation as if it were a political campaign where you use slogans and speeches and things and thatis and speeches and things and that is enough to keep investors sentiment going. people like tim cook are looking at the market from a different perspective and are hoping for some really tangible economic policies that will improve the economic situation there. that's not going to come at this expo that it may, at some point in the future. jeff moon from — some point in the future. jeff moon from china moon strategies, thank you again for your thoughts. many leading economists and business leaders are warning that raising tariffs would be harmful to the global economy.

the investment bank goldman sachs says tariffs will raise inflation in the us by nearly i%. michelle fleury has all the details in new york. the wall street investment bank goldman sachs is one that the wall street investment bank goldman sachs has warned that president—elect donald trump's proposed tariffs could put an upward pressure on prices. on monday, donald trump said on the social media platform, truth social, that he would impose an addition 10% tariff on goods from china and a 25% levy for canada and mexico. goldman's chief economist explained in a note to clients that the tariff hikes could increase core pce prices by nearly i%. the core pce, which excludes food and energy costs, is the federal reserve's preferred inflation gauge. based on the bank's analysis 1% rise in tariffs generally leads to 0.1% uptick in core pce inflation. with tariffs targeting china,

mexico and canada who together account for 43% of us imports, goldman expects the proposal could generate close to $300 billion annually. it is unclear whether they tariffs will be implemented at the levels trump has imposed or whether exceptions will be made. still, goldman noted mexico and canada are less likely to face broad tariffs, compared to china. what is going through the minds ofjerome powell and his team at the federal reserve? well we got some further insight. the minutes from their latest meeting have been released and show the us central bank is comfortable with the pace of inflation, even though it remains above the official 2% target and so support moving "gradually" to lower interest rates given stronger—than—expected us economic growth and fading concerns about the health

of the labour market. i'm joined by syga thomas, chief executive officer at ensah advisory partners. welcome to bbc news. what was your interpretation of the fed minutes? ., ., your interpretation of the fed minutes? ., . ., ~ minutes? good morning and thank ou for minutes? good morning and thank you for having _ minutes? good morning and thank you for having me. _ minutes? good morning and thank you for having me. my _ minutes? good morning and thank you for having me. my primary - you for having me. my primary takeaway from the fed minutes was the reserve is gradually moving from an emphasis on battling inflation to a more broader focus on sustaining labour market health and economic expansion. as you know this seems like a delicate balance, policy are trying to unwind years of restrictive monetary policy while the economy remains resilient. if you take a look at the minutes themselves, the committee voted unanimously to cut the interest

rate 25 basis points, setting a target at 4.5 to .75%. there are headwinds —— four .75%. backin are headwinds —— four .75%. back in october there were only 12,000 jobs that were credited, this may been impacted by storms in the southeast in widespread strikes. nevertheless there are reasons for cautious optimism. the nevertheless there are reasons for cautious optimism.- for cautious optimism. the fed next meets _ for cautious optimism. the fed next meets in _ for cautious optimism. the fed next meets in december, - for cautious optimism. the fed next meets in december, it - for cautious optimism. the fed next meets in december, it is. next meets in december, it is the final meeting before donald trump returns to the white house, do you expect them to cut next month as well? the key issue that _ cut next month as well? the key issue that remains _ cut next month as well? the key issue that remains is _ cut next month as well? the key issue that remains is whether, i issue that remains is whether, how to get to unusual interest rate and the monetary policy is neither restrictive or stimulative. policymakers emphasise this is sort of fixed and depending on broader economic positions, the market is expecting a little bit less than 60% and we're going to see

25 basis points cut come december.— 25 basis points cut come december. ., ., ., , december. ok, syga thomas, thank yom — december. ok, syga thomas, thank you. thank _ december. ok, syga thomas, thank you. thank you. - around the world and across the uk. this is bbc news.

this is business today, i'm sally bundock. is britain's ev policy in crisis? the uk trade body, the society of motor manufactuers and traders late yesterday issued a statement calling for urgent government intervention to safeguard the car industry while britain aims to hit zero emissions targets. the government has responded by saying it will be starting a fast—track consultation on the zero emissions mandate. as you've been hearing, the owner of vauxhall has announced plans to close its van—making factory in luton, putting about 1,100 jobs at risk. stellantis, which also owns brands including citroen,

peugeot and fiat, said it would combine its electric van production at its other uk plant in ellesmere port in week ford announced 800 job cuts in the uk because of lower than expected ev follows a warning from nissan thatjobs at its sunderland plant — the biggest in britain — could be at risk unless the government relaxes its ev sales rules. joining me now is david bailey, professor of business economics at the birmingham business school. good morning to you, david. just explain to our viewers what are the rules?- just explain to our viewers what are the rules? they are complicated. _ what are the rules? they are complicated, essentially - what are the rules? they are complicated, essentially thisj complicated, essentially this year there is a mandate being introduced which means car companies have to sell 22% of their cars as battery electric vehicles. if they don't reach that target they could find a very heavy fine. that target then ramps up over the next few years, 28% next year, to 80% by

2030 and then there is a ban on the sale of petrol and diesel cars after 2030. pretty strict targets, many car companies in the uk have been complaining about this and that they are unlikely to hit those targets and particularly because demand for new electric bear calls among private buyers is very much stalling. they are saying this is going faster than the market can tolerate. d0 this is going faster than the market can tolerate. do you think that — market can tolerate. do you think that the _ market can tolerate. do you think that the business - think that the business secretary will move on this? i think you will have to do. he was refreshingly frank yesterday, we heard from him that he gets that there is a problem and that there are things that need to be done. think there are four areas i would like to see them move on, one is more flexibility for firms on the mandate, so they don't have to hit the exact target initially but maybe later on. second you need to see faster rollout of the charging infrastructure to get people into electric cars because part of the problem is at the moment it is all sticks and no character. the industry

is getting hammered but there is getting hammered but there is no support for consumers. we need to see the rollout of the charging infrastructure to need to see the r