tariffs on eu goods after imposing punishing levies on canada, mexico and china. welcome to business today. i'm ben thompson. it's a new trading week on global financial markets the us dollar has strengthened while the canadian dollar hit its lowest level since 2003. tariffs against the uk.

in his cross—hairs. but it will definitely happen with the european union, advantage of us, and, you know, we have over a $300 billion deficit. is really out of line, the uk is out of line let's take a quick look at the global market reaction. joining me now from sydney

is tim waterer, who's president speaking there. president from speaking there. says has the power to imestars , nermus. make investors verynervpus. is meke investors very'nervcxus. is the meke investors very'nervoos. is the of the —== i think. specifically, day, ithink. specifically, traders are wondering now, those latest tariffs, will it those latest tariffs. will. it an own goal for the those latest tariffs. will. it an own goalfor the us? will be an own goalfor the us? will it be wounds and growth? how many inflation and growth? how many will countries have to houses will eeentfies base to " " through to sell goods in . us? a120, 7 7 us? also, we 7 7 us? also, we don't know —— the timeline is or what what the timeline is or what countries be on countries will be on trump's tariff hit list. that uncertainty is causing a lot of —: = -: to be risk 77 to be risk averse investors to be risk averse. we don't know investors to be risk averse. the we don't know investors to be risk averse. the w picture know investors to be risk averse. the w picture could what the growth picture could be for us and indeed the

be for the us and indeed the that is putting traders world. that is putting traders in a frame of world. that is putting traders ina frame of mind in a selling frame of mind at the start of the week.- different because feels different because you might argue that these are not might argue that'these are not designed to change the n picture, 7 n picture, they 7 n picture, they are economic picture, they are this is about political. this is about president trump trying to from the of 77 of other 77 of other countries, so leaders of other countries, so they don't really follow the .°f of the j of the more rules of the more rational things. maybe that is why are it investors are worried. it so many things, not encompasses so many things, not just trade. encompasses so many things, not 'ust trade. . . just trade. that is right. world leaders _ just trade. that is right. world leaders are - just trade. that is right. | world leaders are getting to the first flashbacks to the first trump term. tweets can rattle markets. in the case mexico markets. in the case of mexico and canada, it is very vague and’canada. it is very vague will need to do to out they will need te de te the bar to get those

meet the bar to get those 25% tariffs reduced. trump wants tariffs. fedueed. trumefifafifl ' " ' borders but we don't tighter borders but we don't know about what entail a would entail. definitely a different way of doing diffeizent way of doing. . it has ruffled def“??? ll hes fldfflgid" ”7 .. 7" 7 around def“??? ll he? fldfflgid" ”7 .. 7" 7 around the def“??? ll de? fefflf?§77 777 7 777 7 around the world. def“??? it nae refitted ’ "’ ' " ’ around the world. ., feathers aroufid'the world, on a dare. these could touched on a dare. these could be self—defeating �*the us because it could hike economy because it could hike inflation. . . economy because it could hike inflation. ., , ., inflation. that is the other trum - inflation. that is the other _ trump last - inflation. that is the other| _ trump last week inflation. that is the other - _ trump last week was quandary. trump last week was about wanting a lower talking about wanting a lower rates, but by interest rates, but tariffs by their can be their nature can be inflationary and through the federal reserve of a pickle, �* they can 7 �* they can cut �*they can cut rates in whether they can cut rates in 2025. the reaction we are in todayis 2025. the reaction we are in today is a seeing inmar—kets today is a of anticipation, = -:7 the rates could 7777 7 7 rigggggggun be expectation. the rates could be setting higherfor expectation. the rates could be setting higher for longer than what we were anticipating heading into the h=dfia fit... the as: very finding mt... tiff em

very much. tariffs but "the goal should be that things result incooperation." france's central bank governor said trade tariffs would "increase economic uncertainty," had a "fair and balanced" trading relationship with the us. let's explore this more now with sam lowe, consultancy. countries around the world are trying work out what the trying to work out what the tariffs mean. 0r trying to work out what the tariffs mean. or could it mean for eu? : biggest fer the ee? eet the e'ddflt' partner fer the ee? e.et the e'ddflt' partnerfor fer the ee? e.et the e'ddflt' partner for the fer the eeq e.et the e'ddflt' partnerfor the eu, fer the eeq e.et the e'ggflt' partnerfor the eu, but trading partnerfor the eu, but a significant trading partner for the eu, but a significant — a significant one. .. the us does import partner. the us does import quite a lot of goods from the uk. they are having to start to

think about what retaliation could look like an eu think about what retaliation could look l if: an eu think about what retaliation could look l if those an eu 7 7 don't don't convince discussions don't convince trump to a different trunne ten c�*nnnse a different of travel. trumpte .....s of travel. . . ., course of travel. cars and vehicles _ course of travel. cars and vehicles will _ course of travel. cars and vehicles will be _ course of travel. cars and vehicles will be a - course of travel. cars and vehicles will be a specific| if 7 if look ' if look at 7 focus. if you look at what american consumers buy from �* compare �*compare to �* compare to the 7 �* compare to the other way your compare to the other way around, maybe europeans don't have the appetite for huge american cars, but it is not true in reverse.— american cars, but it is not true in reverse. this comes from the — true in reverse. this comes from the first _ true in reverse. this comes l from the first administration, where trump threatened to put tariffs on european but tariffs on european cars, but he was talked out of it. it is a problem. is no pattern a problem. there is no pattern that anyone in europe can press that anyone in europe can press that makes consumers a more side of the buy a'more american. side of the is you 7 exporting 7 7 exporting fe7wer exporting fewer cars 7 exporting fewer cars to start exporting fewer cars to the us. it will be a difficult

issue to resolve, particularly the us. it will be a difficult is he to resolve, particularly the us. it will be a difficult is he remains ve, particularly the us. it will be a difficult is he remains fixated :icularly the us. it will be a difficult is he remains fixated on larly if he remains fixated on vehicles. sir keir starmer is heading to brussels to join a gathering this marks the first time a british prime minister has and the european union. between the uk and the eu. but i do want to see a close relationship on defence and security, on energy, on trade and our economy, and that is

what we are working on. in the relationship. sam, it does sound as he is saying, we are not part of the saying, wearenot part of the union, but we the european union, but we want the good bits. i european union, but we want the aood bits. ~ ., , good bits. i think that is probably _ good bits. i think that is probably going - good bits. i think that is probably going a - good bits. i think that is probably going a bit - good bits. i think that is probably going a bit too | good bits. i think that is - probably going a bit too far. government can 77 7 7r7el7atio7n7s7idp7777777 77 7 7r7el7atio7n7s7idpw7ith777 deepen its relationship with the eu without on the 7 7 the customs7 the customs union and joining the customs union and the market.

it isa it is a moot thing in terms of the uk talking about it publicly. there is a relative degree of optimism, but going fizz—zge 7 the previous 7 7 back. to the previous there are conversation, there are other things going on in the world that will have an impact. is aood to that will have an impact. see—g - good to talk _ that will have an impact. see—g - good to talk to _ that will have an impact. see—g - good to talk to you. - in other news, staying with the fallout of those us tariffs, $600 billion wiped off global, markets since saturday according to figures coinmarketcap. the second largest coin, fell by over 25%. of "riskier" assets.

in four weeks' time. lenders to the debt—saddled company are offering up to £3 billion in additional short—term loans to buy failure to secure approval will see thames edge closer to a temporary nationalisation, which could cost the government some £2 billion a year. that's the response from one member of the us been given access to a treasury payments system that including social security payments. the tesla and spacex boss is due to give president might go next.

if you had to list the traits that elon musk has, problems, but it's also going to get certain things done. we sometimes had been a nation of risk—takers he thinks he will go too far because he always says, if you haven't gone too far and then have to scale back, so it's going to reverse this notion of we have a whole lot of guardrails and conflict rails. and what kind of issues do you think that they may clash

well, we see that musk already pushes the limits, work for somebody. fight, fight, fight. so musk is not going to just be a puppet for donald trump to share the limelight. for better or worse, want to blow up much of the bureaucratic state in the united states. that is your business we will see you very soon,

hello from the bbc sport centre. and the los angeles lakers. five—time all—star luka doncic, who is currently injured, three—way trade deal. reach the nba finals. as part of the swap, with the mavericks i thought it was fake news. it is a business, - you have to understand this, nobody is safe. nobody is safe. if a five—time world nba first team, a 25—year—old, - a guy that led the league . and finished second or third