at some point this is going to impose a severe cost on the the whole thing is just crazy. if president trump wants to usher in a new golden age trump's threats to seize control of the panama canal. introduced in the uk. la hosts the grammys — with beyonce and taylor swift

hello — this is bbc news. president donald trump has said americans may feel economic "pain" from his tariffs on key trading partners , but that it on saturday, mr trump signed off on 25% tariffs on neighboring mexico and canada, despite levies brought in byjoe biden. all three countries have vowed retalition, prompting concerns of a trade war — and rising prices. "we will make america great again, and it will all be worth the price that must be paid." canada is america's biggest trading partner. hours trading partner. now, hours after donald trump confirmed a

25% tariff on products 2234; tariff’tjntanag'ian praducts the a trade war is entering the us a trade war is under way. on the streets of toronto is �* towards on the streets of toronto is �*towards president on the streets of toronto is izowards president on the streets of toronto | is _is president on the streets of toronto | is _ president on the streets of toronto | is _esident on the streets of toronto is ~ , . ident on the streets of toronto is ~' , . . . , | 75nd and i'm surprised ind i'm surprised he 72nd i'm surprised he is on canada w _*7 on canada like this turning on canada like this because we always such because we were always such good neighbours. buti good neighbours. but i also think it is going to hurt us economy here in we make lot wezmake lot auto we 5 make lot auto wesellke lot auto we sell those )t auto we sell those to auto we sell those to the jto we sell those to the us, parts, we sell those to the us, they make cars, the cars they make cars, now the cars are going to be more expensive. mexico also been with mexico has also been hit with tariffs of 25%. oil at the lower rate of io%. "3;- ’.::�*;':2 “5 24}?! 9255421? .. f ——— says £522,552! 122"; “5 2952’— 9’22:54:2"$ .. f "' says doing this to trump says he is doing this to make stop illegal trump says he is doing this to make and top illegal trump says he is doing this to make and top flowal trump says he is doing this to make and top flow of vinto 7into us. turn, j 7 president 7 j 7 presidentaccused mr mexico's presidentaccused mr of doing nothing to trump of doing nothing to combat violence at the combat gun violence at the board and threatened

taxes. —— at the retaliatory taxes. —— at the border. i retaliatory taxes. -- at the border. u, , , retaliatory taxes. -- at the border. _, , , ., mm 1mm: mm aggression to both the us and mexico because it'll be e consumer who ultimately pays for these decisions that are fer these decisiens that—arg— ,., ,, ,, . made. fer theee decieiene thét—gre~ ,., ,, ,, . made. in fer theee eeeieiene thetere— w w” ww? made. ., being made. eifffiege’ 1096 le being made. eifffiege’ 10%le on being made. eifffiege’ 1096 le on all being made,�* - 1096 levy on all goods - be a 10% levy on all goods america imports. translation: ~ , , america imports. translation: ~ , translation: i think this is a very _ thing- - translation: i think this is a very _ thing- it - very systematic thing. it be simply said that if very systematic thing. it increase ply said that if very systematic thing. it increase tariffs d that if very systematic thing. it increase tariffs we |at if very systematic thing. it increase tariffs we should they increase tariffs we should also tariffs. there also increase tariffs. there should be a process of mutual cooperation mutual win—win. cooperation and mutual win—win. president trump signed the �*after a of golf in resort behind me in his resort behind me here in west palm beach. many senators are uneasy republican senators are uneasy about because millions about it because millions of homes are in states they lead which rely on canadian oil to heat them. they also sell heat themgthey alse sell products. the canadian products. but the president the disruption be temporary and understand j understand that. he's refused to back down after

also refused to back down after canada's repeating 7:77"??? 7 7 the i i i i r i s the country his demands that the country should become part america. should become part of america. donald trump has said he will also impose tariffs on the eu to try to rebalance trade. but on he i on he has the no word on whether he has the uk in his ~ no word on whether he has the uk in his — uk in his sights. we don't know whether there _ uk in his sights. we don't know whether there - be _ uk in his sights. we don't know whether there - be a - uk in his sights. we don't know whether there - be a quickly | whether there will be a quickly solution and then ftariffs "eisr’ifiq’inif" " w ' "eisr’ifiq’inill'e' " w ' ftariffs will be gone by the the tariffs will be gone by the end of this week. and most importantly we don't know whether a limited action just focused on these or whether is countries or whether this is the start of a broader trade war that intends to war that trump intends to engage in with the rest of the 22-— 7 7and the uk europe, for example. president trump is for exan he e. president trump is for exan he e. pl use ent trump is for exan he e. pl use america's is showing he will use america's economic dominance to achieve his goals, despite a trade war the us's nomia iqbal, bbc news, florida. liberal party. he said mr trump's tariffs

were �*crazy�* and said canada well, we are taking... strong measures on $155 billion worth of american goods, and if there's going to be another... so we are going to impose costs on the american economy — that's one thing we're going to do. spent to toughen up our order. sees reason because at some point this will impose severe cost on the american think you are doing here?

let's speak to betsey stevenson former chief now proffessor of economics and public policy at the university of michigan. thank you very much for your time here on have time here on bbc news. you have previously expressed concern ta riffs tariffs drive that tariffs could drive inflation. how soon could feel the impact of americans feel the impact of that? , a, , americans feel the impact of that? , , a, mm seeinu some of already seeing some of the impact of it and we did :-= the fourth quarter that in the fourth quarter was a surge in people there was a surge in people purchasing goods, to get 27:72:22 z: -zj££ 2: —:ee of the tariffs. that 77 ahead of the tariffs. that starts already fuelled starts to already fuelled which leads to price = -: 77 thatwillfi " 7 w 77 thatwillionlyi " i that will only get when the 77 when the actual j 77 when the actual tafiffs worse when the actual tariffs come on and the goods

worse when the actual tariffs come mored the goods worse when the actual tariffs come more expensive. one of the much more expensive. one of the questions will be how did questions will be how much did people get peeple actually get ahead �*and therefore how much december and therefore how much does demand come down in response. might not all response. it might not all show up response. it might not all show up as inflation, it might also up economicactivity. show up as economic activity. we might see a slowdown in growth in the first quarter. you at economic most of them are forecasters, most of them are admitting right now that when forecasted a year they fereeaeted e ate-g “gear they fereeaeted e streng “gear the us they fereeaeted e streng year the us in they fereeaeted e ate-g year the us in 2025 they not build tariffs did not build these tariffs into their baseline estimates. the question will be how long these tariffs will last and do the question will be how long thes need fs will last and do the question will be how long thes need to mill last and do the question will be how long thes need to go last and do they need to go back and �* what they need to go back and �*what inflation is reconsider what inflation is going to be in the us, how long 77 écan keep 7 77 can keep rates 77 écan keep rates high 77 77 écan keep rates high to 77 they can keep rates high to combat inflation coming from and how 77 and how much 77 """'an;(h;;'w'aim“ the ter'ffi and hfifimuth eitt the actually contract terfe lend hefiemueh eitt the actually contract due economy actually contract due to the in to the slowdown in business activity that will naturally occur. people will not pay occur. people will notjust pay the higher prices. there will be a decline in sales and a

in activity. of decline in activity. critics of the - american - decline in activity. critics of the - american free i the ndrthfimericah'freetrade including president argue 77 argue that trump, of course, argue that it was to blame forjob wee te hleme ferjehleeeeer ee e ' eeeee and let's wee te leleme ferjehleeeeer ee e ' eeeee and let's not that 7 7 that president trump forget that president trump , it very clear when he was made it very clear when he was he wanted to campaigning that he wanted to make these changes to tariffs. so there people out there iwill z 2; will be happy? w|llbehappyw|th " zviii]bahébfifititiftfii; " who will be happy with this news? ., l l, , news? there are eerteihl who news? there are eefteihly - who mi news? there are eefteihly - who mw news? there are eefteihly - who will be happy] news? there a% - who will be happy with news. in terms of how the news. in terms of how clear he it, honestly, idon't lat lot of people belieee think a lot of people believe he would fully... he such across —e= ——7 tm;— of re was pretty board of tariffs. he was pretty late to the board and he late to the board and saying he going to tariffs on was going to do tariffs on canada. �*to was going to do tariffs on canada. i to election canada. prior to the election he was really on isa at china. there is a lot of cheap import in us. a lot of sentiment in the us. a lot of the american public was, the—american peelic was. like. let's the—american peelic wee; like; let's put higher tariffs sure, let's put higher tariffs on china. he wasn't campaigning

on china. he wasn't campaigning on higher tariffs, i think on higher tariffs, and i think that's important to clear. that's important to make clear. that's maybe one reason why he has a big load to hee e hig petiticel teed te' ' e e'e' like are to really feel 7 to really feel the? to really feel thevpinch. going to really feel the pinch. this was a state that and this was a state that trump, has a lot of supported trump, has a lot of in it, and the 7 i will behow much they gjjjejstion will behow much they behind him when the stay behind him when the economy is slowing and prices ii 77 i you mehtioned 5 you mehtioned that are rising. you mentioned that the decline in manufacturing 7 whether 1 i i 7 whether it 1 i 7 whether it was 1 i 7 whether it was due to and whether it was due to trade. there are decades of simmering tension on that issue but it is important to realise that the primary thing that reduced the reduced manufacturing in the states was united states was technological change. we going back change. we aren't going back on that. we aren't going to way we did in manufacturing the way we did in the 1950s. so i don't think sisigoing visigoingito ” " w wiwngwowingw it; 6555 ww " w wiwngwowingw it; 6555 q " w wingwowianw a; 6555; big

m the united w w jobs the united states. w jobs the united states. even jobs te the united ete’te’e’eeen’ there is a of though there is a lot of nostalgia for kinds of though there is a lot of middle—class 1950s manufacturing jobs. middle-class 1950s manufacturinu'obs. l, l, e= wthat thichould noted that this could be about political potentially be about political optics rather than the economy. can you us more on what can you tell us more on what you think about that. i w trump trump wants to w trump wants to be president trump wants to be seen first of all as a very strong negotiator. he is the power strong negotiator. he is the