the u.s. threatens new tariffs against mexico in a bid to curb migration the result so far investors are frightened business groups are furious and a top u.s. economic priority a new nafta deal is now at risk. also in the show the u.s. china trade war threatens to redraw long established supply chains we'll show you why by looking at one american business. we'll tell you why farmers helping to fuel china's extraordinary coffee boom are so happy. and qatar hastens to rebuild its image after complaints about dismal and deadly working conditions in its new mega stadiums for the 2022 world cup. welcomes your business update i'm stephen beard zimbalist thanks for joining us president donald trump says he will levy

a 5 percent tariff on all mexican imports unless the country curbs migration across the u.s. southern border by june 10th the tariff could rise to 25 percent in october mexico's president andres manuel lopez obrador says he will respond with quote great prudence to trump's latest threat and that it won't stop his country from ratifying the new nafta agreement the u.s. chamber of commerce america's top business lobby as meanwhile said it is considering legal action to stop the move. and let's take a closer look at this with our financial correspondent yes courts in new york. how are the markets responding to this news. well quite allergic hardly anybody here on wall street saw this coming and we saw quite a sell off by a good 350 points ending the week mostly on the lowest level on the day and just to

put this into perspective we've traded lower for 6 consecutive weeks so that is actually the longest losing streak in about 8 years so certainly not a very good reception here on wall street so a punctuation mark on a bad month who is set to be hit the hardest were these tariffs to come into place it's mostly common your fact there are. suppliers to the car industry but then also we also see some trade for computer equipment for example from mexico to the u.s. but you could clearly see that comment your factor is probably will be hit hardest and we also saw that here with stock prices general motors losing about 4 and a half percent just here on friday. now yes there are reports coming out that trump's own trade advisor actually advised against this move but what's behind that reasoning. yes certainly i mean we got actually the head of the treasury

steve muchin and also one of the biggest trait in visors is they're both saying that they do not agree with the president on this measure on the other side we have a hard liner peter navarro saying that he considers this move from u.s. president to donald trump a brilliant so obviously quite different opinions on that and besides that makes it cold now this weekend counter-measures from china actually will go into effect so we certainly opened up a couple of new friends and then also people on wall street are asking what does it all mean for possible kateri of the whole words the european union so at this point everything seems to be possible but as we've seen this shop reaction on wall street maybe u.s. president donald trump might reconsider and so that those terrorists mexico

might be avoided at the end so the trade tangle getting even more complicated there . for us in new york thank you now the u.s. china trade war the end just mention that's intensifying new chinese counter tariffs on u.s. imports go into effect on saturday targeting 60000000000 dollars worth of goods beijing also says it's creating a blacklist of foreign individuals and companies to ban from supplying chinese firms caught in this tit for tat are normal businesses here's a look at the difficult decisions they're being forced to make pink for the ghetto as. and cars for the boys the family run furniture retailer delta children has its business model down pat but it's supply chain that's up in the air the company's products are imported from china and now subject to new u.s. tariffs wires retailers companies like myself don't know what to do we place orders or do we not place orders if we place orders in china. 25 percent do the rate.

it's gets very expensive if we move the production and the duty break up come comes off what happens to the existing supporters that we kill so we're in the dilemma we don't know we are uncertain is the worst thing you could do for business and they aren't alone businesses around the world are suffering as a result of the trade war with global growth projections adjusted downwards in the u.s. new terrace of forcing firms to choose among several bad options eating higher costs raising prices or overhauling long established supply chains or stressed racing for delta children is that things are going so well with the chinese suppliers they've been trained and well to us and trained in creating safe baby products. and i don't want to cut those relationships it's not just delta children hoping for the trade war to be put to bed businesses around the world and their suppliers are watching and waiting for the break. over to latin america where the humble potato might not

seem like a vegetable worthy of much celebration but improve it's taking a star turn the 10th annual potato festival in lima is displaying many of the country's 3 and a half 1000 varieties of the tuber the world's largest selection people come from across the country to celebrate different flavors colors and forms the potatoes. and china has a reputation of being the land of tea but coffee is becoming increasingly popular china in fact now produces more beans than coffee powerhouses like costa rica and kenya combined growers are cashing in. they've arrived in every major city international coffee chains are popping up all over china with a caffeine fueled enthusiasm starbucks opens a cafe here every 15 hours and suddenly everyone has their favorite coffee down to trim it black no sugar for them aka. a latte but as well as serving domestic demand

china is increasingly helping the rest of the world get its coffee cake in recent years many farmers have converted to the crop some of them doubling their income to around $10.00 a day something with singing about. well far before i grew corn and potatoes but i made much less money than i do now with coffee. because. once famous for tea is now china's coffee capital the 1st plants were reportedly brought here by french missionaries some years later china is now the 13th biggest producer in the world culture both of which you are to have plantation is located near the tropic of cancer it's a very favorable area for coffee cultivation as altitude climate and 1900 millimeters of precipitation pay a year it's ideal. from bean to cup china is embracing coffee whatever form it takes. there is

still about 3 and a half years until the next world cup kicks off in qatar in criticism about how one of the world's richest countries is trying to prepare itself for the mega event hasn't let up now the tory government is trying to change its public image. labor city the model for the future of good times workforce clean stero surrounded by high walls on the southwestern outskirts of dakar 40000 workers live here mostly from southeast asia. we're not allowed to speak to those who leave here after criticism of workplace deaths starvation wages and squalid accommodation kowtows government is now trying to improve its image. thanks to reform strategies and new labor laws which made qatar an attractive destination for qualified workers from all over the world that was our goal.

and sally. qatar wants to shine and set a new benchmark for the 2022 feet for world cup 7 brand new stadiums are planned one is already completed fascinating designs in the desert sand high tech features and smart cooling systems. this one at a cost of 600000000 euros the social gap however remains dizzying in the richest state in the world workers at the stadium putting up to 10 hours a day 6 days a week. the medical care is free they say also food and internet but is that enough we're allowed to speak to selected workers in the interpreter is also their bus the answers are hardly expansive. but the working conditions that many people come from if a sample from different places. are they good ok. that's

a much much pertinent this is. just one he says about $340.00 euro that's a fair price and he hesitates and sense yes. we asked this worker how many hours a day he worked and the. human rights watch says salaries are often paid late or not at all cost what so withheld unions are banned exploitation according to human rights watch. there have been some minor promises some partial reforms realized but still they don't include all of the workers they don't apply to everyone and they're not enforced very well you know obstruction of justice people's access to justice is so difficult. as preparations for the 2022 world cup intensify

there's still a huge gap between claim and reality in qatar thank you and that's it from in the business you can find out more about these and other stories online and dot com slash business i'm stephen birds in berlin thanks for watching.

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