on paper, china has a lot more to lose from a trade war than the u.s. does. $375ficit is billion in 2017. my own firm, we estimated if you take a look at china's exports through the work ripple effects throughout the supply chains in china's economy, exports to the u.s. are $450nsible for about about 27f china's gdp, million jobs in china. china, u.s. exports to the impact to the u.s. economy is a strong fraction of that. yvonne: before i let you go, talking more of the china response. you think selling treasury holdings or weakening the currency -- is that a real threat? michael: i do not think selling off holdings is a real threat because of china starts selling off its holdings of u.s. securities in a significant way, it is going to run down the value of its own assets. i do not think that is a major threat. what i think is far more likely is that u.s. companies, their life in china could be made substantially more uncomfortable than it is at present, which because weshame, estimate the operations of u.s. companies in china and the ripple effects through t

china announced reciprocal tariffs on u.s. uties ordered by president trump. china is targeting soybeans, automobiles, chemicals, and aviation. it will take effect when the u.s. institutes its own tariffs. >> china will not back off from its 2025 program. they are going to work hard irrespective of american tariffs to make sure they develop the economy and future technologies. we are not going to be able to slow that down. some of their practices of pursuing that 2025 are not fair, but a lot are fair. we have to start developing our technologies at a much better pace. paul: fed officials are warning the potential trade war as uncertainty to an otherwise bright economic outlook. it is too early to say what it may mean for jobs, and policy. james fuller says there are downside risks. fed governor also thanks trade tensions and uncertainty. china, but raised the losses due to its most popular upgrade being exempt. it would narrowly escape levies based on limits outlined by beijing. the bigger threat is for older 737's and private

u.s. dollars last year trade flows with china really unbalanced the u.s. imported chinese goods with five hundred billion dollars but only sold them one hundred thirty billion back the u.s. trade deficit with the e.u.

china took about a third of u.s. exports last year. ate will the effect of the tariffs be? will china be changing its source of soybeans? >> you've seen a bit of a market pullback today. there's still room to negotiate. this isn't something happening tomorrow. this is the day that agriculture has been dreading. there's the feeling that donald trump's protectionist stance would dragon agriculture -- dragge in agriculture. you don't make up for a crisis like this overnight. china is dependent on u.s. soybeans as well. they do have options. brazil and argentina could sell more of their crops to china. i've been talking with some analysts saying they've been looking for other places to sell the u.s. crop. there's no other market like china. this is a huge blow for those exporters. david: talk about the other options china might have. there were some weather problems. soybean production is actually down. doesn't this mean the chinese people will be paying more for food? >> argentina isn't the big story. brazil is. brazil has had weather issu

u.s. and china eased after u.s. cials signaled they were open to negotiations and not seeking a trade war. the yen weakening against the dollar around 107 yen, the lowest in three weeks was also a welcomed buying cue. china announced wednesday it would retaliate against tariffs on chinese goods by slapping penalties on u.s. products including soybeans, beef, autos and airplane the soybean market fell as much as 5% at one point before settling to a 2% drop. the news helped soy saucemaker kikkoman which rose 3% on hopes of lower import costs. the announcements worried that u.s. soybean could be affected and that's all from the nikkei, back to you. >> thank you very much for that. speaking of soybean, u.s. s soybean futures recovered after china hit the u.s. with a 25% tariff on soybean. >> the chinese looked at where could they have an impact with many people who may have the ear of president trump or at least may have some ability to talk to president trump and his administration the farmers are that they were big sup

china? looking forward, we need to think about where the u.s. and china are in asia, and where the u.s. and china are globally, that would give us a sense what of the ectory relationship will look like. are we able to manage difference ecessary asia pacific, manage hrough the fact the chinese military is growing and are the u.s. and china going to be able adjust to one another in a way that creates at quo, um stable status stable balance of power or one is growing,petition to erences increase, begins assume military dimension and you have some kind of that culation or accident takes the relationship from one f competition to one of outright rivalry. globally we have to pay ttention to the fact that as china rises and becomes more influential in parts of the as china rises and it becomes more influential in parts of the the middle east, latin america for example, are the chinese going to be thinking about global governance, in a way that opens areas of cooperation with the united states. ability ford to the the u.s. and china to manage our differences. there are some real challenges on th

u.s. exports twenty six percent of its meat now china has added a new tariff on u.s. pork products china is a particularly important market last year we sent one point one billion dollars of pork to china that made it the second largest export market by volume so it's a it's a disappointment producers say that one hundred ten thousand jobs in rural america are directly tied to exports of pork a trade war could put some of these at risk if u.s. port gets too expensive for chinese clients it's in great demand around the world but right now because of. the uncertainty around the situation with china with other export markets like you know the situation with nafta in mexico and canada it has pork producers and others in agriculture nervous about investments to take advantage of what is great demand for our product right now the white house has proposed twenty five percent tariffs on some one thousand three hundred chinese products it only took china eleven hours to respond with a list of similar duties on american goods. i think business with a. lawyer . culture. a hair. s

♪ vonnie: we are covering the u.s. china trade skirmish and mark a reaction. rst we have breaking u.s. economic data. let's get to abigail doolittle. abigail: the isn nonmanufacturing composite for the month of march is coming in at a slight miss. the survey had called for a reading of 59. this is relative to february. andht decline from february also a slight miss. similar to what we saw for the manufacturing isn earlier this week. anything above 50 does signal economic growth. not a lot of growth here on this wednesday. the dow, the s&p 500 and the nasdaq all lower. has to do with -- this has to do with peers around a potential trade war between the u.s. and as china has new tariffs on soybeans and automobiles. aircraft among those tariffs. investors not liking that uncertainty. where we are releasing some pain , the commodity complex. commodities down sharply on the day. tariffs against u.s. soybeans on pace for the worst day since 2015. industrials also getting hit. pretty steep declines here. on thisn on the year threat that seems to be steepening. on pace

those of the imports from china into the u.s.. e white lines, that is what china is buying from us. meanwhile, the trade deficit continues to get bigger. is this a game of chicken of the beginning of a real trade war. nobody knows for sure. president trump has directed to write a directive on limiting investment from china, but they are still trying to back down. there is a 60-day comment period , so we have two months for something to happen that does not lead to a trade war. tensions, battles, and the next question is what. ramy: if this tit-for-tat trade threat actually turns into a trade or all come in terms -- trade brawl, what happens? >> it will not sink the u.s. economy. ok, $50h of trade, billion of goods being hit with these 25% tariffs, for the u.s., .2% of gdp, for china .03% of gdp. that's $13 billion to the u.s. economy. a $.13 equivalent of increase in the price of a gallon of gasoline. the dallas fed study put out impact, but amall big trade war impact. tariffs on metals will cut long-run gdp by .25%, but a full blo

terrorists from china and the u.s. niting fears of death --iffs from cheer -- china tariffs from china and the u.s. manning fears, china says it will levy 25% duty on $50 billion of u.s. imports, things like soybeans, automobiles, chemicals. the heart of u.s. manufacturing and agriculture. joining us is the head of research and strategy. how do we categorize this? mark chandler out with a note saying we should not be militarizing the light was around this. this is not like a war. how would you characterize what is going on? armies arer in that not fighting but they have different interests and trying to support their interest in any way they can. the u.s. has put tariffs on selective goods in china. based on some sort of trade criteria, or economic criteria. china has put tariffs on u.s. goods. trying to maximize the political and market pressure. the language they used any press conference was meant to affect the market. it can make the policy look as damaging as possible to the u.s. because that would put pressure on

the new tariffs that china's initial response to the u.s. move to slap tariffs on steel aluminum and other imports worth some sixty billion dollars a year china by contrast is raising tariffs on about three billion dollars worth of u.s. imports. beijing says it will never submit if the u.s. launches a trade war and says that tariff increases are in line with world trade organization rules to protect its interests still the scale of china's new tariffs is modest the move looks more like a warning shot than a major counterattack the u.s. is china's largest single market a full blown trade war is the last thing china would want. for more on the growing trade tension between china and the united states let's cross over to our asia correspondent andrea hang in singapore good to see you andrea so if china doesn't want to enter into a full blown trade war how do you interpret those chinese tariffs on u.s. goods. well monica it's very hot not to think of it as a trade war or as a retaliation is some kind of retaliation against the u.s. however analys

most since october after china and announced a potential 25% tariff on u.s. soybean imports. as the second biggest in china, that it could increase costs. soybean futures fell as much as 5.2% thursday in chicago, and the most in nearly two years. we are seeing some of the losses ease, but the move carries economic and political weight for trump given the backing he gets from agricultural states. you so much for that. the first word news with paul allen in sydney. paul: the trump administration has indicated it is willing to negotiate with china as trade tensions escalate. beijing has announced reciprocal tariffs on a range of drawbacks in line with the $50 billion of duties ordered by president trump. china is targeting soybeans, automobiles, chemicals, and aviation and says the measures will take the place -- affect when the u.s. institutes its own tariffs. >> china is not going to back off from its 2025 program. it will work very hard irrespective of american tariffs to make sure they and china develop their future technologies. we are not going to be able slow that down ver

i want to know the effects of china-u.s., u.s.-china, china-u.s.ng markets of this globe. what does it mean, not for mexico, not the n-11 nations. what does it mean for emerging markets around the world? >> it is not good news for emerging markets. not good news, period. now this is the response to the teel and aluminum tariffs. it is some a somewhat limited response. it is calculated to deal with the size of the exports of chinese products to the united states, on aluminum and steel. there is a better way here designed by the g-20 and that means the united states and china and all the g-20 leaders ich is the global forum on excess steel capacity which we established to deal with the substance to have the problem. if we don't deal with the substance over the problem, we will continue to deal only with the manifestations, putting tariffs on each other. the oecd is the facilitator on this global forum. it is working. it is making progress. we should give it a chance. tom: within that and giving it a chance, the fact is the president of the united sta

china hits back in response to u.s. tariffs on chinese steel and the minium beijing now imposes levies on the u.s. products including pork wine and fruit we'll get more on the world's top two economies trade dispute from our asia correspondent. also on the show portugal abandons the austerity. policies pushed for by the e.u. the result the portuguese economy is growing again. welcome to d.w. business stocks in china kicked off this new week with mild losses amid lingering worries of a full blown trade war with the united states on sunday china announced tariffs of up to twenty five percent on one hundred twenty eight u.s. imports including pork and wine the new tariffs kick in today and beijing said the move was to save china's interests and balance losses caused by a new us terrorists. these american avocados are destined for the chinese market but they might not sell so well anymore now that china has imposed tariffs on fruit and meat while steel pipes and scores of other imports from the usa the rates of fifteen perc

u.s. and china effectively. large trade relationships between the u.s. and europe so far are completely exempt from what we are seeing at the moment. we think it will stay at that level but it's certainly not going to stay where we are now. there's the risk that other countries will be ball -- involved eventually. manus: good morning to you. we heard from mr. bullard over at the federal reserve and he made the point that it's going to be a bumpy ride. there are echoes of the swinging 60's. if we look at the broader story, we get back to basics, things could get better. , they're talking about 1966 to be precise where we saw the unemployment rate fall to 3.6%. 3%n inflation ratcheted to and the fed had to kick into gear. what's the probability of 1966 being repeated? i was not around in 1966, i should add. christian: nor was i, but we had a different monetary system. i think it's probably quite inferences toraw today's world, i would guess. one thing is pretty clear, if everybody raises their tariffs, that's going to be inflationary at the global level. t

on china's part, they see the u.s. trying to contain their ambitions, their territorial ambitions in the south china sea, their ambitions to contribute more to global institutions and to have more military power around the world. on both sides, there's definitely a sense of increasing tension. host: with that in mind, talk about the placement of tariffs from the united states on certain products, the retaliation from china. spell out what happened and what are the larger implications there? guest: earlier in march, president trump took the step that he had set his course last year when he asked for investigation into whether or not china's steel dumping, aluminum dumping created a national security risk for the u.s. as our steel and aluminum industries have been hollowed out the past few years. after that report came back, it seemed to recommend the tariffs and that's what he did. he slapped tariffs on steel and aluminum and not just on china's, but many countries including our allies like japan, south korea, and europe

china that war was lost many years ago by the. foolish or incompetent people who represented the u.s. well whatever you call this trump is doing his best to stop tensions announcing new duties on a whole range of prized chinese tech products beijing has retaliated. china has launched rockets and built high speed trains the chinese economy has been booming so much that it can counter the u.s. threat of punitive tariffs china is not about to take a trade dispute with a us lying down we will take corresponding measures of equal intensity against u.s. products according to chinese foreign trade low which will be announced in the near future we have the confidence and ability to respond to any protectionist measures . the tit for tat is now in full effect beijing plans to match washington's fifty billion dollars in tariffs with tariffs of its own and the u.s. move disregards the nature of mutual benefit in economic and trade corp it disregards the two countries industries and the interests of consumers and is neither conducive to chinese new american national interests e.g. more than one hu

would but several other countries are also suspicious of what being used as leverage against china this u.s. china trade war some are also reluctant of a negotiation to remit renegotiate with a rather fickle president of the united states he who constantly changes his mind so it could boil down to a list of pros and cons and seeing which side of that list is heavy or a dry hang thank you very much for the analysis this is on life into his trade tensions china's surplus with the u.s. why last month and this will infuriate don't trump chinese traders and pharmacists trucking off the risk of u.s. soybean taffs china's the biggest buyer but isn't a stranger to the business. soybeans the latest casualty of proposed tariffs between china and the u.s. but chinese farmers at this shanghai trade exhibition remain unconcerned for them a chinese tax on u.s. soil and poets is the business opportunity they've been waiting for the cracker for you know. they don't know when i first started out a hand long she and province had a large share of china's so even markets here then american soybeans came like t

u.s. tariffs on some of its products china's state newspaper says the u.s. was delusional if it thought beijing would not react. these american avocados are destined for the chinese market but they might not sell so well anymore now that china has imposed tariffs on fruit and meat wine steel pipes and scores of other imports from the usa the rates of fifteen percent on one hundred twenty items and twenty five percent on eight others. the chinese government says the people support its move though some in china regret the ensuing rise in prices. it's definitely going to have an impact many fruits that kids love only grow in foreign countries we don't have them in china that is a direct impact. it's absolutely right to impose tariffs because i've seen the news about the us crapping trade deals with us it's right to fight back. the new tariffs are china's initial response to the u.s. move to slap tariffs on steel and alimony m imports the u.s. is also threatening to impose further terrace on sixty billion dollars worth of other chinese imports a year over what it

china? looking forward, we need to think about where the u.s. and china are in asia, and where the u.s. ina are globally, that would give us a sense what of the ectory relationship will look like. are we able to manage difference ecessary asia pacific, manage hrough the fact the chinese military is growing and are the u.s. and china going to be able adjust to one another in a way that creates at quo, um stable status stable balance of power or one is growing,petition to erences increase, begins assume military dimension and you have some kind of that culation or accident takes the relationship from one f competition to one of outright rivalry. globally we have to pay ttention to the fact that as china rises and becomes more influential in parts of the as china rises and it becomes more influential in parts of the the middle east, latin america for example, are the chinese going to be thinking about global governance, in a way that opens areas of cooperation with the united states. ability ford to the the u.s. and china to manage our differences. there are some real challenges on the secu

u.s. and china and the role the u.s. has played in developing the china that we know today. joel: as with any good history

a trade war with china getting closer the u.s. threatening to slap $5 billion of new tariffs on chinese imports. less than an hour ago china firi firing back announcing $50 billion in its own new tariffs on u.s.-made products. >> when the china retaliation happened less than an hour ago, futures took a turn down we are now lower by 400 points on the implied open. and a scary story on the west coast. an investigation unfolding at youtube's headquarters in california following the shooting there late yesterday. adidi roy is out west for you. it's wednesday, april 4th. "worldwide exchange" begins now. >>> good morning welcome from wherever in the world you may be watching. it will be a busy day and another one dominated by trade, tariffs and a stock selloff. beijing responding sharply after the u.s. threatening 50 billion in tariffs, and then china announcing 50 billion in its own tariffs against the united states we were down about 100 points implied open not bad. when the retaliation hit the tape, we saw a 300-point plunge in the u.

china? -- exports oforts steel and aluminum to the u.s. are not that much. steel industry, we do import quite a bit of steel, but most not from china. around 2%-5%, maybe 2% comes from china, which is why the terrorists have been levied on somebody countries. this tariff is not the way to stop china's steel dumping. the problem is that chinese deal -- chinese steel goes to other countries and then comes to the u.s. this is just going to hurt the u.s., because a tariff like this, there will be a wto cases, it alienates our allies, what did we do to deserve this? it is not clear in the long run how it will solve the problem. >> larger geopolitics, we look for china for help with korea and other issues. how do those efforts get impacted by these tariffs? >> that is a difficult question. that is part of the issue with the strategic rivalry with china. the fact is that we do need china's help, especially on north korea. 90% of north korean experts go to china. china is north korea's only ally. any kind of pressure we want to levy on north korea cannot really be ef

this news broke overnight to china's going to fight back again. the latest u.s. terror spirit as you can see come to shanghai down a percentage. the kneecap fractionally. the hang seng taking a hit with kospi down 1.5%. breaking news just moments ago. reuters reporting china's finance minister is saying that chinese tariffs on u.s. soybeans reflect demand from chinese farmers in the united states must be resolved through negotiations. not changing the future story appeared >> let's take a look at european markets or syrup and at this hour. i was the first trading day of the week after easter. the second trading day to the downside that the dax down 1%. almost half a percent decline in paris and london. cheryl: let's continue to cover breaking news that the trump administration has announced a plan to some 25% tariffs on $50 billion across 1300 categories. lauren: all of us as washington continues to criticize beijing for its policies that require foreign companies to hand over their technology, their trade secrets. the proposed tariffs do not go into effect immedi

u.s. president trump proposed the latest terrace in response to china levying tariffs and u.s. cars and soybeans that was also in retaliation to an initial round of terrorist washings and put on chinese products critics warned that an all out trade war could hurt the u.s. farmers worried this is the one thing that keeping an eye on what's happening out of washington what's happening with the markets that directly affects our lifestyle directly affects our pocketbooks in the way we planned for the following years are we going to pay all the bills a share or are we gonna buy a new piece of equipment. you know do you get your kids you know a couple new pairs of shoes more than half of us lojban exports go to china so for us farmers any escalation of this trade dispute means they'll while it's could be taking a direct hit but this is a spot that even the u.n. secretary general is watching closely. well first of all to the wars are always the dead for those involved in the good war and for the international economy as a whole. we need to do it in the international cooperation we wou

u.s. into china. beef products will see tariffs from the u.s. into china. s on corn, on cotton, we mentioned soybean, automobiles, 25% on set -- on soybeans and automobiles. twice 5% on u.s. aircraft. we are seeing a solid list on commodities and products that will get hit, as well as what size the tariffs will be. if you look at tariffs on $50 billion of goods, if we see the number 25%, hang around that level, that means actual tariffs ,ill be about $12.5 billion which is what the u.s. did. we use these big headline numbers, but the percentages are smaller, so the actual tariffs would bring in less money, and less if those exports slowdown. yes, that is right. there are a lot of details. here, theteresting optics, the fact that they chose that 25% number, the fact they after theday 12 hours u.s. release their own list, we saw that delay after the first round of steel and aluminum that donald trump announced. there was a delay of a number of days, a week until china responded quite conservatively area of this does suggest a shift in the way this whole trade

is no china and the u.s.tain disagreements over trade issues, i'm still very confident about china-u.s. currency operation as their see npc continues to has great cooperation with many asrican companies, including an mobile's. going forward, i am positive that china u.s. energy collaboration will only become better and deeper. manus: that was the chairman of see npc -- cnpc. paris.to london from ?here are we he did not seem to be too stressed about trade wars, tariffs. he said we have lived through many things in this region and this is just another moment in the on market's history. how much of it has dominated your conversation in the past 14-20 days. as bloomberg was just reporting, -- there seems to be a slight tone coming from both sides of the moment. going back a few weeks, one of the things we did not gary basket very interested in with a steel tariffs. a lot of those deals are specialty seals -- steals which are imported. since then, we have had other secondary development. the patch may be some sort

>> in the case of china and mexico, brazil is a big winner. they are a center of u.s. exports. olume of soybeans to china as the u.s. so result comes out as a big winner. there are not many winners. russia?at about we saw the start of last week after those sanctions were imposed on big business leaders. we saw the market reaction. is there a risk that spills over and hurts the economy? >> i would say the risk is, mark, that we are digging ourselves deeper into a whole without any sense of getting out. trump has no real strategy. how are the u.s. and russia going to get back to normal trading? xi is good at tactics but not strategy. to oligarchy,s which is certainly possible. it depends on how putin reacts. then we are all in problems. we have lots of problems from business and investment. more, the worries you prospects of a trade war between the u.s. and china and the us's deteriorating relationship with russia? with chinationship is critical. it is critical we get started with negotiations. if we have what i call a funny trade war because this is not about trade. this is about

if china can show that, i think the u.s. may backdrop. k that is the only way for china, in my opinion, to stop the bullying from the u.s.. if they wanted to up the ante, sure, they are running out of space when it comes to the trade side, but what about the treasury side? the nuclear option? would they ever threaten or attempt to do that? if push comes to shove, i think they will. the only way they can do that without incurring massive losses is to do it aggressively and quickly so they can sell before others realize. that would indeed be -- in other words, in order to not hurt themselves, they would be forced to play aggressively which beat be a massive event for the rest of the market. they also have -- their experience in 2015 was not as successful. the chinese regime controls capital outflows a much better than they did then. there is a lot of ways for china to receive inflows that they did not have at the time in terms of direct access to the bond market. it might not be as painful as it was in 2015. i would consider, of course, firs

u.s. to china in 2016. so auto products, chemical products, and aircraft, the second largest export in 2016 from the u.s. to china. we don't know when these tariffs, the u.s. and chinese tariffs, will go into effect. the trump administration's plans are subject to change and a public meeting that is scheduled to take place on may 15th. the chinese have said several times that they will respond with the same magnitude and the same scope to any u.s. tariffs. they're indicating they are ready for a trade war. we've seen the first skirmishes in this trade conflict over the course of the past week with china imposing tariffs on u.s. exports of pork and wine and fruit and nuts, for example. and now they're saying they're willing to respond in kind as the trump administration escalates. dave? >> trade wars are easy to win. we shall find out. ivan watson live in beijing, thank you. >>> 50 years ago, martin luther king jr. was assassinated in memphis, tennessee. his legacy is being remembered all over the country. la

china. president trump has hinted that the u.s. reach a deal that eases some trade tensions. he says that the administration will "probably reach an agreement to resolve the problem. goldman sachs chief economist says the bank continues to expect that the two countries will reach a compromise. the fbi has raided the offices of president trump's longtime lawyer, michael:, seizing documents -- michael:. he had been a key figure in the president's be go issues, paying $130,000 to the poor and star, stormy daniels. he says he made the payment without the president's knowledge using his own money. >> it is frankly a real disgrace, and attack on our country. an attack on what we all stand i saw this and heard it, i heard it like you ad, i said, that is really on whole new level of unfairness. paul: mark zuckerberg will tell congress later that facebook's problems are his responsibility. he is due to give two days of testimony on the worst crisis in the company's history and will say, they did not do enough to prevent fake news causing po

in the spat with china u.s. trade secretary will ross says he'd like to reach an agreement with china soon and the president's economic advisor larry could lower questions whether the latest tariffs will ever take effect. or he bounces at the frankfurt stock exchange for us really how do you read into this could this be the beginning of the end of this very short lived trade war. yes. i hope so but i don't know and i don't think anybody who reacted so positively to the positive signals from the united states knows either i talked to a traitor just as he was leaving the stock market when trading that finished just a little while ago and he said you know who knows when the next tweet will come from the white house and what will be in it so people are ready for for backlash as for one hundred eighty degree turns but i think everyone was surprised at several officials from the administration in washington coming out and indicating that all's not lost there is a readiness to talk now it will be up to both parties to s

u.s. imposes on them. i expect china'solved at some point in time and i do think on a political basis, the u.s. and china have to talk and have a lot to talk about on the trade front including technology. that is why i did not expand this situation -- expects this situation to be the same as what has been announced over the next three to five months. haidi: what about huawei? do they look more attractive in the meantime? guest: i would argue that all things being equal if this continues they would benefit when it china's telecom companies are looking for alternatives. supply thenot equipment given asked to supply on a global basis, zte is a smaller player so huawei will benefit from gaining market share in china. zte will not be able to deliver. this is a more short-term picture, the longer-term picture is whether they will be facing a semi-treatment by the u.s. in the longer term. that has to do with what trumps trade and technology policy will be. policy will be. this officially is not something that we can have a defini

trade negotiator trade tradition ship between china and the u.s. is direct germany is not directly involved but if there's a trade war if there was a trade war obviously germany would be affected because growth would decline in china and put potentially over the medium term in the u.s. as well and both are important export partners of germany and of the united states not only has a big trade deficit with china but with germany as well do you think do you feel that pressure on german foreign trade or foreign trade will increase further down the line. well we heard already some indications of that donald trump has already threatened to impose tariffs on german automobiles. well this hopefully is only a threat so far as also the steel tariffs now are. exempted from them at least for the time being so i think as i said in the outset donald trump tries to threaten to put threatened threats into the room in order to get in the ocean position as far as europe is concerned he also wants the european union to increase the defense spending for his for instanc

u.s. and china have sent stocks tumbling in the u.s. and asia china has slapped tariffs on the whole range of u.s. imports in response to levies imposed by the trumpet ministration last month on chinese steel and aluminum analysts say it could be just the beginning with washington set to unveil more tariffs later this week for these american avocados that destined for the chinese market but they might not so so well anymore now that china has imposed tariffs on fruit and meat wine steel pipes and scores of other imports from the usa the rates of fifteen percent on one hundred twenty items and twenty five percent on eight others. the chinese government says that people support its move though some in china regret the ensuing rise in prices. it's definitely going to have an impact many fruits that kids love only grow in foreign countries we don't have them in china that is a direct impact. it's absolutely right to impose tariffs because i've seen the news about the us crapping trade deals with us it's right to fight back in. the new town i

u.s. and china in particular. ffect in this region of the world could be quite large. >> could thailand be in the line of fire because the u.s. is taking issues with currency manipulators? thailandeem like issuing signs of that, what do you think of people who view thailand is a currency manipulator? >> thailand is not a currency manipulator. if you look at our development in the past year and a half, thailand has been the best-performing currency in east asia. by currency appreciated close to 15% since the end of 2016. >> where do you make of where the baht is trading right now and where do you see the baht headed this year? >> if you do not have a particular level -- >> is it something you are comfortable with? trade, we about a tend to focus more on the impact it might have on the private sector. >> let's have a look at the recent monetary policy committee meeting. there seems to have been a split and the vote was 6-1, one person suggesting the rate should behind to 1.75%. is that a sign of a hike coming? >> tha

u.s. and china fell 28% last year from 12 month earlier. was driven by a drop chinese investment in america from $46 billion to $29 billion. beijing tightened controls on overseas investment while u.s. national security officials clamped down on chinese acquisitions of american companies. mostlyckerberg emerged unruffled after a second day of testimony on capitol hill. house, he said facebook has done enough to ensure use it -- user data was not misused. hereturned may it -- repeated mea culpa, it was my mistake. he said there should be more federal regulation and zuckerberg agreed more federal action may be in order. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. ♪ is the fed getting more hawkish on the path of rate hikes? marchs of the fomc's meeting read by some analysts that more aggressive policy tightening may be in the word. with moreays is here on the keywords and phrases we have to watch out for. --hleen, has the fed rack ranked up

a trade war with china getting closer the u.s. p $5 billion of new tariffs on chinese imports. less than an hour ago china firi firing back announcing $50 billion in its own new tariffs on u.s.-made products. >> when the china retaliation happened less than an hour ago

even though china and the u.s.sagreements over trade issues, i am still very confident about china-u.s. energy corporations, as china is opening up policy. at the moment, cnpc has great cooperation with many american companies, including exxon mobil, chevron, and conoco phillips. i hope our ties won't be negatively affected by the trade disputes between the two countries. >> china has just launched oil futures trading in shanghai. what does it mean for a company like petrochina? >> [speaking mandarin] cnpc fullyly -- supports the renminbi in global oil trade. this is also part of china's continued and enlarged opening up policies. we hope to get more warm reactions from our partners in the growing participation in the future trading platform. you are one of the first financial institutions to reduce your work with companies. what is next? >> well, i think we have to continue our exposure. we have reduced our portfolio about 80%, and we will continue on that road. but i think what is next is to then put the money an

u.s. and china really entering a trade war? and a little action. plus, are the u.s. ally entering a trade war? we have expert insight from around the globe. and emily chang talks with facebook's sheryl sandberg at a critical moment for the social media colossus. >> i feel deeply personally responsible because there are real mistakes that we made and that i made. erik: this is bloomberg. ♪ ♪ erik: you are watching "bloomberg best." trade dominated the discussion on bloomberg. let's revisit some of the most provocative conversations, starting with henry mcveigh. he gave me his view of the u.s.-china situation. >> it is pretty clear the market thinks the trade war is bad. what do you think? henry: it is friction and economy -- in an economy where we wanted borders to come down. that is what china integrating into the global economy, going all the way back to wto in 2001. i don't believe we will have an all-out trade war. my view is that global trade actually peaked in 2007. nobody is talking about that as a percentage of gdp. it went up from 1984 two 2007 and since the g

u.s. in this case over chinese practices. is part ofouse case china's alleged theft of u.s. tellectual property. citingand japan are subsidin substantial straight interests. japan is one of the largest stakeholders in tech transfer to china. this complaint about intellectual property rights has been made many times. betty: thank you very much. sheryl sandberg saying advertisers have curtailed spending over the data privacy crisis. sandberg told emily chang that she take some responsibility for the scandal. build our didn't operations fast enough, and that is on me. we had 10,000 people working in security at the beginning of this year. this year alone we will double to 20,000. we are massively investing in smart technology, and doing all of this to make sure we get to a place where we can proactively protect people's data. emily joining us now from san francisco. you spoke with sandberg. what did you learn from this interview? ?o they get it are they really doing the things they need to do to turn this around? >> we heard mark zuckerberg take personal responsibility for this

china is urging more trade talks with the u.s. vent greater damage to relations and the white house just said that china should not target fairly traded u.s. goods. >> this is china's response to the steel and aluminum tariffs. we are waiting on the u.s. publication of what the u.s. is going to single out for tariffs in terms of intellectual property. the chinese did, along with the tariffs that they put into effect today, say we would rather do this through negotiation than through confrontation. >> we certainly find ourselves in what seems to be the middle of a storm right now. we don't know if it will blow over or if it will actually pick up and get worse from here. i think what we have seen from the markets today obviously is that they are being jolted around by some of this news. i think they got quite used to and got quite a thick skin to some of the rhetoric from trump in his first year, but little action on the trade front. now we see a lot of action both from the u.s. side and the chinese side, and we can see that reflecte

the new tariffs that china's initial response to the u.s. move to slap tariffs on steel alley many month other imports worth some sixty billion dollars a year china by contrast is raising tariffs on about three billion dollars worth of u.s. imports. beijing says it will never submit if the u.s. launches a trade war and says that tariff increases are in line with world trade organization rules to protect its interests still the scale of china's new tariffs is modest the move looks more like a warning shot than a major counterattack the u.s. is china's largest single market a full blown trade war is the last thing china would want. now is take a look at some of the other stories making headlines around the world today a defunct chinese space station as reentered the earth's atmosphere years after scientist last contact with it. one was launched in two thousand and eleven and served as china's first space station stronger say it mostly disintegrated upon re-entry but some debris appears to have landed in the south pacific ocean. in costa rica th

time, most observers believe that president xi jinping won't want to prent mself or china as one that is giving in to u.s. pressure. r "nightly business report," i'm unit yoon in beijing. >>> as china a the u.s. go back and forth, regional economies and local are trying to figure out just how much financial pain they may have to endur if the threat of tariffs turns into a reality. brian sullivan reports tonight from charles ton, south carolina. >> reporter: the difficulty in talking about tradects that it im every segment of the economy. in fact, 26% of the american economy at some point comes through a u.s. seaport. like this giant containership behind us probably carrying $1 billion worth of goods on oneship alon there's so much going on he, they're getting a 5$500 million project. >> the big trend is handling big container ships.g we're tryo raise our cranes, deepen our harbors and straighten our wharves and deepen the capacity. >> savannah, jacksonville, florida, and the port of new york have also invested more e sure2 billion to m that the big ships can reach them as well. but trade and tariffs impa

trade is front and center for many watching china right now. holdings, u.s. rose the most in six months. did that put an end to speculation that china could be holder ofrage as a u.s. treasuries in this trade spat? it certainly calls it into question, doesn't it? a number of economists say it would be a very dangerous move for china to start reducing dramatically its holdings of u.s. treasuries in retaliation, because china would suffer as much, equally, as the u.s. should they rotate significantly out of u.s. treasuries. the u.s. treasury market is so liquid and deep and there are few other places for china to put its money. you have others well versed in what happens in china warning that this was potentially something china may look at further down the line in any heated trade dispute if these trade tensions continue. you have the u.s. or chinese ambassador to the u.s. not ruling out looking at u.s. treasuries, so it is an does remain a concern, but for many it feels like a rest -- last resort move. treasury holdings picking up by $8.5 billion in february,

the growing spot between china and the u.s. over trade tariffs is playing havoc on american markets stocks on wall street took a tumble on the opening dropping by more than four hundred points the selloff was triggered by china's announcement that it will tax fifty billion dollars worth of u.s. goods let's go live now to gabriel elizondo who's in new york tell us more about what's been driving the markets and why they've been so volatile today. yes one economist put it he says this seems to be the opening salvos in what could be a big trade war between the world's two biggest economies the united states and china there's a lot of worry here on wall street wall street does not like uncertainty and that's certainly what they're seeing there's many factors that are affecting this define the markets but it's certainly clearly the anticipation is based on a potential trade war let's look at the dow it's about twenty three thousand right now and numbers mean nothing without perspective the dow was under twenty thousand when donald tru

china? exports of steel and aluminum to the u.s. really are not that much. for the steel industry, we do import quite a bit of steel, but most of it is not from china. it's around 2% to 5%. , which% comes from china is why these tariffs have been levied on 70 countries around the world. -- so many countries around the world. these tariffs are not the way to stop chinese you'll don' steel dumping. it is sent to a lot of countries and then it comes to the u.s. this is not solving the problems of chinese steel dumping. this is just going to hurt the u.s.. a tariff like this, there will be wto cases that come into play. it really alienates our allies letter asking what do we do to deserve this? it is not clear how in the long run it will really solve the problem. host: a larger geopolitics, we went to china for help on north korea and other issues. how do those efforts get impacted by these tariffs specifically? guest: that's a difficult question and that's part of an issue of the strategic rivalry we have with china. the fact is that we do need china's help, esp