america imposes 10% tariffs on all chinese exports launching an anti—monoply investigation into google and two other us companies. we'll explore how that might work. welcome to business today, i'm ben thompson. we begin with the latest on the trade clashes between the united states and its key trading partners. at midnight in washington the us went ahead with its promise to impose 10% tariffs on all chinese goods headed to the us. china quickly retaliated saying it would do the same, a tit for tat row that could have big implications for the global economy. would take effect next monday.

an extra 10% tax will be added to goods including crude oil and agricultural machinery, while imports of coal the us tariffs. with its northern neighbour — canada. saying canada had agreed to some of his demands. our north america business correspondent michelle fleury in response to the threat of tariffs, some canadian monica morelli cancelled subscriptions to amazon she isn't planning

to sign back up. it's not acceptable. they were bracing for the worst. around 80% of canada's exports end up in america. this company has been in business for over 50 years. working together, creating relationships that took a very and now knowing that that relationship was as fragile been around for half a century hurts a lot.

replaced by a sense of relief. all of that tied up with those all of that tied up with those announcements coming from the announcements coming from the white house causing white house causing consternation around the world consternation around the world and some consternation. china says it's china says it's to investigate the us tech to investigate the us tech giant google alleging it's giant google alleging it's �*violating the anti—monopoly law." �*violating the anti—monopoly law." it's another front in the trade war between the two economic giants, as our asia business reporter, mariko oi explains. they're going to investigate us tech giant google for its anti—monopoly behaviour. now, of course, its main now, of course, its main business that we all know, business that we all know, its google search engine has actually been blocked in china since 2010. so many started wondering what so many started wondering what

kind of business activities kind of business activities they still have in china. it still provides apps and games to the chinese market through partnership with local developers. it also has some local advertising business, but it's not a huge part of their business. so just like those tariffs that were announced earlier, some analysts have been saying that those moves seem more symbolic and sending a message to washington, because, of course, beijing has repeatedly said that no one is going to win a trade war. and they have been asking for a discussion between president xijinping of china and president trump. so how are global markets reacting to all the latest developments? let's hearfrom simon french, chief economist at panmure liberum. the two things that stood out to me there were that no—one wins in a trade war and this is about sending a message and thatis about sending a message and that is going both ways. what is your assessment of where we are, is thisjust is your assessment of where we are, is this just posted in tramp saying what i want, if you don't fall into line, i will impose champ max tariffs?

the degree to which financial market success this information, yes we have seen weakness in the last couple of

import stuff. ll, . . riuht. this import stuff. ll , _ right. this is imi stuff. ll, . . gig riu ht. 1 between e— import stuff. ¥j . . 2:72; riuht. 1 between what of the disconnect between what president trumper of the disconnect between what presidenttrumper saying = -7:5 ' 77 ” vitariffstwhich; tariffs, which in! regarding tariffs, which are right,. trump was in davos in a few months ago —§ he wants 7 he wants interest saying he wants low interest rates, he wants to get inflation i that is inflation down. i think that is why markets are why financial markets are concluding isn't in concluding that he isn't in this for the long haul, isn't this fly tbs lgng haul. isn't ”""*""'*”'” to stick tbis fsf tbs tsbg bsst. isb't " "' "" to stick this one out terms of 7 termsiofadditional’ " in terms of additional value—added costs on us in terms of additional value—adde because 1 us in terms of additional value—adde because other parts households because other parts of his economic agenda are not sf mseconemis sgsnds srs bat with what he is consistent with what he is proposing. if consistent with what he is p"°p°5i"9-_ consistent with what he is --roosina. ., ., proposing. if??? m proposing. if??? has happened with canada, trump are keen to out that he has happened with canada, trump are got1 to out that he has happened with canada, trump are got some out that he has happened with canada, trump are got some concessions he has happened with canada, trump are got some concessions and 77 he prepared to 7 7 these tariffs. ”liiésztiri'fflfif ' 72th7ese tariffsjif you ' pause these tariffs. if you look at it not a amount

some �*thisr ' z z : zsome �*thiswas has changed. some of this was already in place. you could t777his777777 7 this is just trump wanted argue this is just trump wanted to look strong and like he is taking it seriously the taking it ssrious'ty but tbs is not taking it ssriousty but tbs is not a lot has how we nical, i 77777t7h7ink the iifififf. tfiifii tfié ifitéféfétéfififi. wrong. fififi�*t tfiifiii. tfié ifitéféfétéfififi. wrong. is in iswrong. he is in perpetual . .. mode. it doesn't campaigning mode. it doesn't making an terms of making an. buttisr in. tsrrss st in the us or politicians in the us or globally. but there is the risk of policy mistake in terms of of a policy mistake in terms of knots and matching knotsandfiatching with trading confrontation with trading partners the risk of partners but the risk of escalation in the breakdown of escalation in the breakdswn sf �*areas escalation in the breakdawn sf �* areas like escalation in the breakdown of �*areas like cooperation, m . uestions, the eg-ziz—z 77 �*77of people, 7 77 �*77of people, military, 7 flow of people, military, defence. that is where the in goodwill might be it could be funded be it may have pro breakdown in goodwill might be associated. it may have pro associated. it may have pro prolonged impacts on the global prolonged impacts on the global

economy. prolonged impacts on the global economy. prolonged impacts on the global econom . , ~ econom . , ~ prolonged impacts on the global prolonged impacts on the global econom. , t, more now on what president econom. , t, trump has been up to. of a sovereign wealth fund of a sovereign wealth fund within the next year, saying it could potentially buy within the next year, our north america business correspondent ritika gupta to an extension signed by trump the short video app tiktok. is following the story from new york. president donald trump is following through on an idea he floated during the presidential campaign, to create a sovereign campaign, to create a sovereign wealth fund for the us. he signed an executive order wealth fund for the us. on monday that charges treasury secretary scott bessent and howard lutnick, trump's nominee, to lead the commerce department, with beginning the process. with beginning the process. mr lutnick suggested the fund could even be used to facilitate the sale operating in the us due

of tiktok, which is currently

them run with it and keep the profits. to invest government to invest industries aggressively in the industries 7 technologies 7 future. and technologies of the future. and technologies of the future. this of the us this announcement of the us this announcement of the us sovereign wealth fund is sovereign wealth fund is fantastic news that is likely news news that is heats that is iiikeiit; fantastic news that is likely to greatly accelerate us to greatly accelerate us economic growth shore us economic growth and shore up economic grdwtbabta'sbors up us security economic grthbano'sbors up us security a economic grthbano'sbore up us security a time national security at a time when we are coming under national security at a time when we are coming under increasing threat from china. iglcgeasing from when we are coming under insceasing from china. increasing threat from china. to answer your question, what when we are coming under int answer threat from china. when we are coming under int answer your it from china. when we are coming under int answer your question, na. when we are coming under int answer your question, what is a sovereign wealth fund? it to answer your question, what is a sovereign wealth fund? it is a sovereign wealth fund? it is a sovereign wealth fund? it is a sovereign wealth fund? it is a sovereign wealth fund? it is a on the us government is a on which the us is a on which the us government would take equity stakes, it is a sovereign wealth fund? it is a or take h the us is a sovereign wealth fund? it is a or take equityis is a sovereign wealth fund? it would take equity stakes, it is a or take equity stakes, it would take equity stakes, it would take equity stakes, it would be acting as a giant would be acting as a giant venture capitalfirm, taking venture capitalfirm, taking venture capital firm, taking venture capital firm, taking equity in venture equity venture capitalfirm, taking equity stakes injoint venture capitalfirm, taking equity stakes in joint venture companies that are being equity sta keslinjoint mental re are being managed by the country's best equity sta keslinjoint mental re the |re being equity sta keslinjoint mental re the country's equity stakeslinjointventore the country's best entrepreneurs and scientists. entrepreneurs and scientists. this is quite different from this is quite different from way the had the way the government had tbs way tbs osssmm’sn’tff” in tbs way tbs gossfnm'snt'bss'" " in the past. then the invested in the past. invested in the past. then the government would invest in ggvernment would investin research and it over the private sector and let to the private sector and let them run with it and keep the

profits. to i

the way the government had invested sell e past. the way the government had invested sell the st. the way the government had invested sell the student is sf, 777t7777h7ey 7 77 7 hogan” 77 7 77 7 7t7h7ey7c7ould7pri7vat7is7e777 portfolio. they could privatise amtrak for instance. i think they are likely borrow more. they are likely to'b'o'rrow more. is a good thing because there is a good thing because it makes perfect sense for the government to borrow, invest in these transformative industries the tutors . the tuture. which atomic! of the future, which would result in extraordinary brea kth7roughs and technological breakthroughs and will become extremely we will become extremely profitable and pay for themselves over e bring down the national and bring down the national debt. i wouldn't be surprised if present trump gains control over policy and overmonetary policy and has treasury department create money 7777r7n7oneythrough77 7 7 7 7 more money through quantitative easing. more money through quantitative easinu. , more money through quantitative easin. _ , ., more money through quantitative easin., , ., . is short. good to who; - is short. good to talk| time is short. good to talk to on the that is your news today, we will business news today, we will see you soon.

one of the biggest names to move was marcus rashford. with a £40 million buy option inserted into the deal. i think he is a player, who needs a bit 77777a7 bit77 7 7 7 77 77777a7 bit7of77777 7 7 7 77 7777737 bit7of7s7u7ppo7rtj 777 7777737 bit7of7s7u7ppo7rtj |7 77 737 bit7of7s7u7ppo7rtj |7 t7hink love, a bit of support. i think it is best for both sides minute that he wave —= for a bit, a change with then! for a bitlsfhanae — — —— 7—— scenery. play for a of scenery; fleets-”r as manager, different manager, different club and mates. hopefully can revive. if he gets he can revive. if he gets anywhere near to the level that anywhsrs'nsar'ts tbs 'srs' that are seeing on the e-—e e_—— villa have got one hell here, villa have got one hell of a he has got so much so much

potential, so much ability with the to be to the ball, to be able to the ball, to be able to the bowl