in the lead in sochi. the german chancellor hinted a new front in the trade route with the united states washington to stop billions of dollars were in tariffs on china beijing lies straight back coming up we'll see how andre babiche the second richest man in the czech republic is shaking up his country's political landscape. this is your business update i'm going home free in berlin glad you could join me well the trade around just moved up a few notches as u.s. president trump hits china hard beijing hitting straight back with tariffs of its own and lynn is adding fuel to the far as well although the heat mostly coming from washington on friday with trump announcing a twenty five percent tariffs on over a thousand chinese products mainly from next month now they include high tech

safari much taking aim at beijing's ambitions to transition to a tech economy now they add up to a total of around fifty billion dollars in punitive tariffs for what dawdle chant calls unfair trade practices the european union is hitting back against the previous us cheese and seal in allegheny and by imposing levies on american goods worth about three point three billion dollars included on that tariff hitlist bluejeans whiskey and motorcycles it seems that we're now on the brink of a trade war. u.s. president donald trump says that the friendship with chinese president xi jinping is important to him but he feels china's business practices are unfair that's why he wants to impose punitive twenty five percent tariffs on goods worth some fifty billion dollars around eleven hundred products will be affected especially those that will affect china's made in china twenty twenty five industrial initiative areas that will be affected out aircraft manufacturing information and

communication technology robotics and mechanical engineering and the car industry chinese consumer goods such as mobile phones and televisions are expressly excluded so that u.s. consumers won't be burdened by higher prices china for its part now wants to introduce additional tariffs on american goods on a similar scale as previously announced. may if the united states imposes unilateral protectionist measures that harm china's interests we will react quickly and take the necessary steps to resolutely safeguard our fair and legitimate rights . we. will fight. washington has already primed its guns and prepared another list of possible tariffs worth some one hundred billion dollars. and covering this story for us is our washington correspondent claire richardson we can bring harry now claire the intervals between

need. to be sure where are we now and and who has the upper hand. well this is a major escalation in what is creeping toward a trade war between the world's two biggest economies and as you say the kind of tit for tat retaliation is picking up pace and this is just the latest move in several very turbulent months in which we're really seeing president donald trump making good on his promises of a hard line trade policy things like imposing of those steel and aluminum tariffs on key u.s. allies trying to renegotiate nafta with canada and mexico and now these tariffs on china is hardly the first u.s. president to complain about chinese trading practices however it is very much the first time we've seen a u.s. president take him on like this it's part of trump's long held belief that the united states is really getting the bad end of a deal that the international agreements that it is partner to do not serve in its interests and that previous administrations have done wrong by the american people

by signing on to them so trump sees him self as a master dealmaker and he's going he's fulfilling his campaign promise of going hard with his trade policy to try and get a what he sees as a more favorable circumstance for the united states and i suppose the question now really. is the strategy really working for him. well some global economist think or at least hope that this is part of a grander strategy that donald trump has in which he's hoping to really hit hard in order to have more negotiating leverage to get a better trade deal however if this is just an end in the if these tariffs are just an end in themselves we could be looking at americans paying more in stores weaker profits of slower growth worldwide still an aluminum industry will be happy about it again one of his campaign promises was to protect american manufacturing and they will be pleased to see their jobs protected from the tariffs on steel and

aluminum but this streak is also the question how much this how much the rich the question of how much this is going to hurt is really going to depend on how china and the european union and other countries affected by these tariffs are going to retaliate and how much damage they can actually do right and of course the europeans and the chinese strategy over retaliation is that working because let's be honest the u.s. economy is not going well fairly robust right now. the u.s. economy is strong and that's what republicans are banking on in order to hold onto control of the u.s. house of representatives and the senate in this november's midterm elections and you mentioned the european union was targeting some all-american or products things like a bourbon jeans harley davidson motorcycles and that is meant to be politically damaging in states where trump has a lot of support and in areas where there are republicans seeking re-election. richardson in washington thank you very much. well the escalating international

trade dispute made itself felt on the markets on friday the looming trade will between the u.s. and china and europe is certainly making invest this global share markets are under pressure even the dow jones lurching into negative territory and kraft build a boeing was among the heaviest news's traders were reacting to their belief that at kraft an agricultural produce would be on the list of retaliatory chinese sanctions and covering the fallout on wall street is a financial correspondent yang's court against what are you hearing there on the floor. well the first round of for you of terrorists on imports from china will kick in on july as six and we will start was the amount of thirty five billion dollars and then china declared friday afternoon that they will

retaliate they will also start imposing a tariff on u.s. imports also on july sixth also in the amount of the thirty five billion dollars and we will see tariffs on a year as agricultural seafood and energy products or aerospace is a not going to be a tariff at least for now and it was interesting to see that the reaction on wall street actually was rather muted so we did not see a huge selloff and maybe that's because if you look at the united states in general at the u.s. economy we are talking about the gross domestic product in total of about nineteen trillion dollars and now we're talking tariffs and the amount of about thirty five billion dollars so for now at least investors do not believe that it's really going to threaten economic growth here in the united states at least for now business as usual some might say thanks

a lot for that yes quarter on wall street. well the czech republic could finally have a government some eight months after an inconclusive election billionaire and the country's president and has been struggling to find coalition partners to his centrist party the social democrats are set to agree to a deal but any government will still depend on support from the communists. bread for prague straight out of the factory belonging to the country's prime minister andrei bobbish the bread factory with its two hundred seventy employees belongs to agro fat a business success story for bobbish agra fat has a yearly turnover of one point five billion euros the company's interests extend far beyond bread but it keeps its cards close to its chest only reluctantly giving a statement on the prime minister's involvement. hasn't been responsible for average fat since january two thousand and fourteen when he joined the government finance minister and now that he's heading up the government he's no longer with

agro fat his share in the company has been transferred into a trust fund in other words mr bobbitt has no part in agro daily business. directly opposite the company headquarters the main office of the political party founded by bobbish is now the biggest political force in the czech parliament andrey bobbish is estimated to be worth around three billion euros was many czech people are concerned that so much wealth and political power concentrated in just a few hands in early june thousands of people took to the streets to protest against what they call an oligarchy. the anti bobbish protests were organized by a group of students. his holding which is now managed by his wife and by his close friends burned during prohibition in government during four years burned

one and a half billion of europe and is the same amount his holding earned during twenty years before together. the activists say agra fat has acquired the most important newspapers in the country turning them into propaganda instruments. the senior editors of all left the papers and are now working independently. on the. interests in health agriculture and community and first two businesses are very much dependent on the state and the legislation of the state many see an indisputable conflict of interests between his business activities and his role in politics business consultant arthur brown knows the mood among czech business leaders how does he see things developing. the government will continue to align itself with the e.u. and the west and there's no danger of the czechs it either. so it's likely the czech republic will stay loyal to the e.u.

but it won't adopt the euro as a currency the economy is growing wages are on the rise there seems little reason for andrei bobbish to change track. that's it europe's they with an ace from the world of business thanks for your company and have a great we can't. cut . cut. cut. cut cut. cut. cut. cut. cut cut. cut. cut. cut. cut.

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