the global markets react to the u.s. crackdown on china the barriers to chinese exports are supposed to protect american security and jobs but investors are seeing the start of a trade war. and this trend you watch company in detroit is key for the city's economic revival but it can't do without parts from you guessed it china. it's time for business on the w. and how you got to get us welcome to the program china said it is preparing tariffs on american imports in response to u.s. penalties on steel and aluminum the take effect today chinese officials vowed to defend against an even larger number of tariffs signed by president donald trump global markets are already worried china could hit everything from american pork and apples to steel pipes its commerce ministry said it encouraged to negotiate but gave no deadline trump has demanded reciprocity in trade and is threatening tariffs on up to sixty billion dollars in chinese imports the chinese have said they prefer

to convince washington to change course but they also say they won't be bully. them it's obviously arrogance they misjudge the situation and underestimate our ability to defend our legitimate interests they've also underestimated the price they'll have to pay for their reckless behaviors. business leaders are warning that a full scale trade war would not benefit either side. the response from our members has been one have concerned that these actions could lead to a trade war which is something that nobody wants to see at the same time it's important to recognize that there has been a growing sense of frustration within the business community about the lack of progress and market access openings in china's increasing use of industrial policies the markets are already worried with global stocks taking a tumble on friday. some commentators see beijing's response to president trump's

latest terror plans as relatively measured but washington is hinting that more punitive measures on trade may be on the horizon. all right let's go over to new york at the new york stock exchange where our financial correspondent jim acosta has been following this story for us yes what a week it has been we know that there are mixed views about these tariffs in general but the markets are in the red do you think this is just a short term reaction or fears that a long term negative effect could be on the way. it really depends how this whole trade war will actually work will it be a verbal threats or will we really see some serious action so far when we look at china for example they're not having tariffs on big ticket i could from the u.s. like soybeans or aircraft from boeing about that could change and then also there has been word on friday that china is at least is keeping the option open to stop

buying u.s. treasuries and overall the sell of continue it here on wall street after the dow jones industrial average lost seven hundred twenty points on thursday we dropped by another good four hundred twenty points on friday so no happy ending here on wall street for this turbulent week. you just mentioned one of the key points of the possibility of china slowing down the purchase of u.s. treasury we know that china is america's most important international creditor what effect could this have if they actually decide to do so. that could have huge implications china right now is sitting roughly on one point two trillion dollars in u.s. treasuries that as you mentioned was that it's the biggest foreign creditor to the u.s. but if we look ahead to the u.s. is running a huge deficit and that's a rather likely to increase especially with the tax cuts that the new and as the

administration just implemented so the u.s. depends on foreign buyers to keep buying a u.s. treasuries and if china would stop doing so that could have huge implications on the financial markets and also for the economic growth overall and until then we will just be thankful that it's friday thank you very much for the analysis and for reports throughout the week. now the worse case scenario of this tariff conflict that's remind everyone would be a trade war were all global economy start imposing levies on each other however it's important to remember that trump is doing this as a retaliation for what he and many others consider unfair trade practices from china needless to say it's a controversial topic. if you thought it was just a spat between the u.s. and china think again the contagion from trump's tariffs will reach european shores

weighing on global trade as a whole so say germany's economic representatives. dustbuster stocks in that what's happening is extremely dangerous because everything's connected to everything else you will be hit if china can't send its goods to america. as it is guns that if they're only losers in this game there's only one better solution from the view of the german economy even if it's difficult to negotiate. trump's critical stance against chinese industry is nothing new europe has also long complained about the country's business practices. of course we have a problem we have the enforced technology transfer in china we know that our companies are in the strong pressure to share innovation to share the results of the research and we have a trust the. think that terrorists are not the right instrument to do

business. germany is now at the negotiating table to avoid steel tariffs against the e.u. in the long run could trump's latest move simply be brinkmanship to make china do the same. the business and trade associations at the heart of europe's biggest economy say that trump is perhaps right to take some sort of action against china but that the measures he's announced are going too far even if china doesn't step up the retaliation trump could be handing them the chance to be seen as the new protectors of global free trade. now as you just heard the e.u. has been temporarily accepted from the u.s. tariffs on steel that's good news for the industry but experts warn the chair of conflict could be far from over germany's top steel companies are assessing the risks knowing that they're dealing with a commander in chief in the u.s. that is impossible to predict. it's the early shift it to some crips steelworks and there's just one topic of conversation for those clocking in the preliminary

agreement about the u.s. steel tariffs. which we don't really believe it we know donald trump always goes back and forth with things kind of if he gets not a problem settlement is donald trump has clearly had so much pressure from within his own country for trouble from the federal reserve banks and the u.s. economy should get chaffed. exports around four billion euros worth of products to the u.s. every year industrial facilities machines and steel high quality high tech steel. the german state association has welcomed to the agreement with the u.s. government but it says the e.u. is far from being in the clear the u.s. will still be sealed off for many of the steel exporting nations from eastern europe and asia their exports may well end up on e.u. markets. we believe that that could mean around thirteen million tons is being

diverted to a. form that's an import increase of fourteen percent which would completely swamp european steel markets some place considerable pressure on companies to adapt. that donald trump still dispute has changed the way many workers at towson crip see the us and has done a lot of damage at least as far as trust is concerned. and speaking of damage tariffs on u.s. imports could also backfire for american companies for example this firm we visited in detroit it relies heavily on parts from other countries slapping them with levees would not only threaten the success of the business but also the city of detroit's way out of crisis. detroit the motor city known for its manufacturing and innovative spirit. tunisia hubbard works on the assembly line at the shrine all the factory building watches before this job she work on another

assembly line one in the auto industry she thinks her job which i know is a step up from the old one she's grown and has more opportunities here the difference between the automotive industry and. industry and the difference with this simply. the size of the pipes that we use to time the concentration that we see here. a little bit more detail. but our shine or the watch is really made in america claiming that can be misleading considering that the companies parts are sourced from around the world. the movement components come from a swiss company with a factory in thailand shine all also outsources other components like cases hans dials and crystals from india china and taiwan they even buy their thread from a supplier in germany so technically their watches are not really made in america

but china as management says it's more about the american jobs it creates the company started out with just six employees now it has a workforce of six hundred fifty with around two hundred fifty of them working on the assembly line the company invests heavily in its employees even flying in watchmakers from switzerland to train them courtney whiting or assembles bicycles that china has detroit show road. he's convinced china all the plays an important role in the city's economic revival. jeff. for years the story's been open and there was much on the street preachers both know their stuff but awful but it's just a little resurgence. for it's coming but. one thing is for sure. the creates are made in america and they help detroit's economy one watch and one bicycle at a time. that was for more. twitter or facebook thanks for

watching.

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