the tip for tat game begins from stair of sunshine a kick in beijing accuses washington of launching what it calls the largest trade war in history. and after a day of talks in the country britain's government agrees to a post brecht citrate plan a free trade area between the u.k. and the european union. it's time for business on the u.w. and how you got to get us welcome to the program china has imposed a thirty four billion dollars in retaliatory measures on u.s. goods it was an immediate response to american tariffs which took effect as washington's clock struck midnight on friday china's measures matched the american levies dollar for dollar instead of making trade truly free and fair and says he wants it to be the measures could end up causing a downward spiral of trade barriers as american partners retaliates the chinese say

they had no choice. the response to trump's tariffs on chinese goods was swift. but at a meeting in bulgaria premier league chan was quick temper size his country's reluctant resolution to come out on top. our view is that creed war is never a solution for china would never start a trade war but if any party resorts to increase terrorists then china will take measures in response. so far has mirrored washington's tariffs slapping twenty five percent duties on goods ranging from cars to soybeans and seafood. the u.s. signaled it could up the ante announcing fresh levies and hinting at half a trillion dollars worth of chinese goods could be in the crosshairs the threat of a full blown economics arms race has many observers worried.

and he doesn't is he took any of this of the united states is trying to get evangelists to pressure and threats if it doesn't work then we'll be in a dangerous spiral and there can only be losers the losers also include americans rural states supported trump could be especially hard hit many export agricultural goods to china but for now at least looking elsewhere to feed its population alright it's a very complex topic that i now want to discuss with our colleagues in the united states in washington we're now joined by our correspondent clear richard sunday dolly financial correspondent joining us from the new york stock exchange and yes i want to start with you let's start with the immediate consequences here what can we expect will happen to the u.s. economy. well i mean that really depends on what steps we might see further from you as president donald trump and i made it pretty clear that they're not going to be the first movers so for now we see the

consequences on the agricultural sector for example here in the united states you have a couple of companies who are all dead already feeling the pain of higher terrorism but having that said so far we're talking about tariffs the amount of goods and the amount of thirty four billion dollars about the u.s. economy has the strings of a total of about nineteen trillion. dollars so so far. the u.s. economy can probably deal with those tariffs and then we shouldn't forget the u.s. economy overall tombs to be rather strong we had a very solid jobs report here on friday so far the damage is limited to certain areas let's talk about another type of damage with you clear china's tariffs actually hit some key for trump's base as we know what kind of support does he have for all of this considering how controversial his decisions tend to be. that's

right javier well it's interesting that this doesn't split directly down party lines like you might expect a lot of top republican lawmakers are making a lot of noise about this because they're facing tough reelection battles in this november's upcoming midterm elections and the states that they're representing where they're facing these races are some of those that are going to be the worst hit by the retaliatory tariffs from china now at the white house has said what much of donald trump's base likes hearing which is that unfair chinese trading practices have closed down american factories have taken away millions of american jobs but that's going to be a much harder sell as these tariffs really hit the agricultural heartland of the united states we're looking at goods like soybeans and cotton a big swing against him are. and farmers and many of those who back in the twenty sixteen election and the republican lawmakers are going to need it to keep their seats come november so generally speaking also if u.s. manufacturers pass on these costs to consumers i think the american public is going

to be unhappy to see a hike and prices for some of their electronic things like computers and phones and that is probably going to happen anyway. back to you we know that trump has repeatedly said that winning a trade war is easy he wants to force china to correct this misbehavior ask there was explaining it can we expect china to just simply give in to make this trade war stop. so far there's no sign that china is really going to back off and anytime soon we shouldn't forget also the domestic market in china becomes more and more important even if china depends more on exports than the united states does actually china is still trying to a certain degree to deescalate things they have not for example chinese consumers to boycott you as good something like that has happened before with other trade five china other asian countries that is not happening yet and also on the

washington side donald trump is to not starting to block chinese investments in the united states to the united states or in a certain sense where we do not see a full escalation of the situation and that might also be a reason why wall street at the moment remains a rather calm actually in the past couple of days we had a rather strong showing here of wall street after the drop a good thousand points in the second half of june so there's still hope that things might not escalate but at the same time there's no clear sign that china is going to back off. from keeping us guessing they're clear richardson in washington and us cause in new york thank you very much both of you for the analysis. british prime minister of the reason may reached a breakthrough in her breasts that strategy after a meeting with senior ministers at her country residence may finally agreed britain's position on what she calls a u.k. e.u.

free trade area the proposal could be a relief for british companies many of which have recently expressed concern due to britain's uncertain future big and small companies alike are worried including a manufacturer of black caps for london. it's a classic british icon the blackcap but the company behind this innovative electric powered taxi is joining the fleet of comic is concerned by brick says. during a visit to berlin the chairman of the london evie company pay to foster said mistakes over breaks it could start an erosion. this is. it's a process that will take ten to fifteen years but it would be madness to wake up in the morning in london and read in the papers that there's no car industry in britain it would be a real shame. his concerns follow in the tire tracks of the big come manufacturers present in britain the likes of many make a b.m.w.

and most recently jackie landrover warning that ongoing brakes it uncertainty could put them off investing in britain. forced his firm touts its modern credentials why find u.s.b. charging is on board but to make their shiny new models any v.c. is torn between supply is on both sides of the channel a third of them based in mainland europe will the u.k. coal industry be wiped off the map in the next couple of decades has forced a fee is that depends on crucial breaks it trade decisions made in the coming weeks . and while the us is saying goodbye to free trade the african country of djibouti is doing the opposite as of this week djibouti is home to the largest free trade zone in africa it's counting on a strategic location of some of the world's busiest trade routes authorities hope the free trade zone will allow the entire continent to play a bigger role the world trade. it's the first phase of what's to become africa's

biggest free trade zone a two hundred forty hector site that's the size of about three hundred fifty football pitches is intended to encourage foreign companies to set up manufacturing plants. at the opening ceremony djibouti as president was joined by several chinese business representatives a reflection of the two countries close economic ties. lesson follows these international free zone is a flagship project it culminates a significant number of infrastructure projects that have seen the light of day in recent years and that are helping to strengthen the butties place in international trade and commerce. the free trade zone won't just boost djibouti economy but out of east africa as a whole. neighboring landlocked ethiopia for instance would benefit from accessing

the port within the zone china has also invested billions in rail and road networks within the region the project is an important part of china's belt and road initiative its global infrastructure project that's also been dubbed the maritime silk road chinese companies in particular are likely to make use of the chance to manufacture and export product. government will be the free trade zones majority shareholder with three chinese companies owning the rest since ninety percent of djibouti is land is made up of desert raw materials are in short supply that's one reason for the country's high unemployment rate. the government hopes the free trade zone will create unities and help lift people out of poverty but. that's all for business you next time go by fox.

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