spokesman for the chinese commerce ministry, the areas china needs to have in order to have a deal for the united states. there are three basic concerns. first, cancel all the tariffs.

this ominous message from china's commerce ministry came midday. quote, the chinese side deeply regrets that if the u.s. tariff measures are implemented, china will have to take necessary countermeasures. okay. at the moment, the markets are not listening to it. at the moment we've got the dow still up 122 points. let's get to the floor show. matt, how are you trading what is very much a headline driven market? i guess you could say we also got a head fake because didn't really do much after the china statement. >> we were due for a little bit of rally. i think yesterday's selloff was kind of excessive. we saw a rally at the end of the day, that was a good sign going into this morning. we got positive headlines but you really have to be nimble right now. that's the key. you can't be saying you know, i'm going to take a lot of risk on tonight or maybe into thursday night ahead of any deal announcement or even ahead of this huge ipo that everyone is looking forward to. i think everyone is stuck in neutral right now and yesterday was probably more a l

the commerce ministry responded today saying that beijing opposes unilaterally imposed tariffs and willo any pressure this came after a statement that the customers ministry issued earlier threatening to take necessary counter measures if the u.s. imposed the new tariffs. now, the hard line stance gives us an indication of how the chinese negotiators will approach the trade talks today the chinese delegation has arrived. now speaking earlier today to a source of mine who is very familiar with the chinese way of thinking he wouldn't give me any specifics as to what concessions of the chinese vice premier might bring to the table, but he did say that the vice premier would be looking to clear up any misunderstanding, possibly seek a lifting of the tariffs or at least not to have them imposed, but he also reminded me that china believes that any attempt to try to change the political system here or the economic model here is seen as an infringement of chinese sovereignty. now, view has been demoted he no longer has the title of special envoy of the president that could mean that he is on a

after he more than doubled tariffs on two hundred billion dollars worth of chinese goods china's commerce ministry says it regrets washington's decision and val's to respond with similar countermeasures. japan is accusing north korea of violating un resolutions with its latest missile tests the second weapons test within a week north korean state media showed at least one on thursday tension has risen following the failed denuclearization summit in february and friends of murdered journalists have been warned by the cia that they are potential targets of saudi arabia the report by time magazine says three activists have been given security briefings by the u.s. intelligence agency. protest leaders in sudan are threatening civil disobedience as they grow increasingly frustrated with the military's delays in handing over power protests began last year touched off by the rising cost of bread and fuel they soon escalated to nationwide demonstrations demanding longtime president. bashir who ruled for thirty years was overthrown by the military on april eleventh a military council then took power promis

no we don't know that yet a list has to be published shortly the commerce ministry says but it's spokesman golfing gave us some details on know what they mean by unreliable sources under unreliable enterprises namely those that do not comply with market rules deviate from a contract spirits or impose blockades or stop supplies to chinese enterprises for noncommercial purposes and seriously damage rights and interests of chinese enterprises so that's a heavy order and you can imagine that the chinese will be able to find companies of comply without. looking at all of this and despite the escalation do you see a solution to the u.s. china conflict by the end of this month at the g 20 summit is that feasible well the jury is very much out on this some people thought it would be a great opportunity for them to. and how shared their differences trump likes to talk about his great relationship with you jumping but i think if. things keep going the way they are then it's going to be kind of difficult for them to actually find an area of agreement particular with mexico just happening and now this

beijing has expressed regret over the decision a brief statement from china's commerce ministry says it will respond with countermeasures but does not offer details chinese vice premier he and u.s. treasury secretary steve mitchell will meet again on friday for china's top negotiator said the turf fight doesn't serve the interests of either nation or territory or life i've come here in good faith given the current particular circumstances i want to reasonably and frankly exchange opinions with the u.s. side but china believes given the current circumstances adding further tariffs is not a good way to solve any problems it's not favorable for china nor is it favorable for the us nor is it favorable for the world so our way out of this whole thing is a principled solution to realistic problems which finally points in the direction of the only result of cooperation. north korean state media has released pictures of a missile test after south korea detected a weapons launch on thursday conjunction oversaw the test that took place in the country's western region as a second missile test i

the commerce ministry today said they want to meet the u.s. halfway, work together to try to solve their differences. what does meeting halfway mean? do both sides agree on where a halfway point could be? a lot of people could tell you they weren't. yes, they are meeting today. the negotiations will continue. could a deal with struck? maybe. i think most experts would tell you the odds of it happening today are small >> matt, thank you very much for the view from china. christine, we want to bring you back to help us understand this. also joining us is margaret taleb from bloomberg news. great to have you. catherine, the talks are going. if they don't work, what does that mean for consumers today? >> one thing to keep in mind is that the tariffs that went into effect last night are for things that left china today. anything in transit now will not get higher tariffs. it's a soft deadline. there are a couple of weeks before the 25% rates go into effect >> or we'll feel them. >> which gives negotiators time to work out their differences, whateve

a spokesperson for the chinese commerce ministry outlining today the only way they will accept a trade deal with the u.s. they have three basic concerns they want to have resolved. first, cancel all the tariffs. second, the trade numbers being used to be uniform and north arbitrarily changed. third the language in the agreement must be balanced and acceptable. the spokesperson says china will never give in on major issues of principle. sound like there are big differences now. the chinese don't want to add back concessions they agreed to protect intellectual property of companies. china has no plans to continue trade talks with the u.s. at the moment. just 24 hours ago the treasury secretary told me would go to china to continue talks. both sides are waiting to see who blinks first. the former wells fargo ceo says this seems to be posturing but the president needs to be careful. >> the president is used to dealing with real-estate developers. this is the way you deal with real estate developers. the opposite party, particularly in asia has to save face. trump thinks he has to win. that

as the chinese delegation is scheduled to travel to washington and new this morning, china's commerce ministry said vice premier liu he will be in d.c. for the 11th round of talks. china responding to the president's tariffs threat saying raising tariffs wouldn't resolve any issue. markets around the world reacting to the president's threat. the dow fell as many as 471 points but then stocks made a major recovery off the lows, the dow down just 66 points. global markets are mixed digesting all of this, and on wall street, futures are slightly lower. i would call monday's losses shallow here and that might say a couple of things. either the market doesn't believe the president would scuttle trade talks or investors believe his tough talk might get significant concessions from the chinese. >>> specific and credible threats from iran led to the deployment of a u.s. carrier strike group in the strait of h harmuz, iranian forces are targeting american forces in syria, iraq and at sea. nic robertson monitoring this live from london. nick, good morning. >> good morning, serious and credible. if we li

beijing has expressed regrets over the decision brief statement from china's commerce ministry says it will respond with countermeasures but does not offer details chinese vice president to lee and u.s. treasury secretary steven chu will meet again on friday asian brought his latest now from beijing. well in the days leading up to this the eleventh round of negotiations between representatives from china and the united states beijing has repeatedly warned that it's not prepared to offer concessions in the face of threats from the united states that said president trump has now said he's received what he calls a beautiful letter from president xi jinping president xi jinping knows what sort of leavers to pull with president from a times like this and this was a letter it seems full of a moly and soothing language so it seems that the the mood is perhaps changing that said china is very nervous this hike in tariffs comes at a time when china's economy is continuing to slow and this is a very important year for china's leaders because in october they will mark the seventieth anniversary o

to do that now one sad news is released it will be conveyed via their website of the chinese commerce ministrybut friday has really felt what a cold war is like this was supposed to be the week remember that china and the united states were going to sign a deal that would finally bring about an illusive end to their trade disagreement that hasn't happened this was supposed to be the series finale to the trade wars this is not going to happen now in the end president front made good on his promise to raise tariffs on more than two hundred billion dollars worth of chinese goods and more importantly he's also warning that he's now preparing paperwork to impose tariffs on three hundred twenty five billion dollars worth of chinese goods that means that potentially everything that china exports to the united states will be subject to terrorists now up until now importers an export is in china and the united states will be able to insulate consumers from those lower tariffs but it's going to be very hard for them not to pass on an increase when those new terrorists are twenty five percent and as chin

all chinese imports into the united states any word we get will come via the website of the commerce ministry here in beijing and it may not happen today may happen on sunday or indeed on monday now the chinese delegation and are on their way back to beijing knew her actually gave a nother interview before he left china left the united states i'm sorry admitting that actually there had been disagreements in the discussions with the united states one of the sticking points came down to what china said it was going to purchase there was a misunderstanding mr hurd seemed to say he also said changes are natural before any deal is finally signed but he also added that the talks are going to continue and it's worth bearing in mind that there is actually a glimmer of hope here elizabeth because these new terrorists that trump has raised actually won't take effect for several weeks because they will only apply to goods coming out of china after midday beijing time on friday may the 10th so as i say several more weeks and i imagine during that time the talks are going to continue no analyst i've spoke

china's attitude at the moment seems to be one of mild defiance and indignation on thursday the commerce ministry spokesman again reiterated that when china gives its word it keeps its word but it also said china was prepared to take counter measures now china seems to be saying that you know the u.s. side is not being completely open about the contents of these negotiations remember the the u.s. side including chief trade representative robert light eyes or has said that essentially china has has backtracked on just about everything it had agreed to in that draft document that was due to be signed today china says that his not the case the thing is we don't really know exactly what is going on in these negotiations we've had full of a vague outline all along for the past year or so or we've had is this sort of drip of the information coming out of the talks today we could have a surprise breakthrough that is still possible that all we've been seeing in the past few days could well have been just simply negotiating tactics but most analysts here elizabeth seem to feel that we're not going to get

the commerce ministry said that china opposes unilateral sanctions and the foreign ministry added that would protect the right of its businesses. huawei is china's most successful national champion and seen as key to realizing being's ambitionso become a technology leader and any ban is seen asn a stack and also on china's attempt to become a super power. i'm eunice yun in beijing. >> to the housing market now, construcon of new homes rose in april after a nasty pullback at end of last year. diana diana olick has more. >> housing starts were weaker than last year. demand was strong, but it was so bad at the end of last year due to a spike in mortgage rates that builders wnge left hol the bag and that has them playing catch-up now and i spoke with taylor morrison homes at cnbc's capital exchangee today. described it in striking terms. >> you get to the fourth quarter and it's probably holistically, the worst quarter we've had as an industry since the downturn, and we ended the year with a tremendous amount of inventory. dein mber, if you would to talk to? anybo every house that was goin

chinese side since they began almost 10 months ago once we do get word it will come via the commerce ministry website that could happen on saturday it could happen on sunday it could happen on monday strangely enough the stock markets here in china started to stabilize on friday that was after president trump had announced he was raising terrorists and 10 to 25 percent on $200000000000.00 worth of chinese goods i think there was a feeling that as long as the 2 sides are talking then there is hope so i think you know the chinese government also factoring that into their decision as to how they respond to the question is what will be the proportionality of that response on the issue of tariffs china doesn't really have much room for maneuver because of course it exports far more to the united states than the other way around so it doesn't have as many targets as the united states but certainly china if it wanted to could make the business environment here in china very difficult for us firms that could delay the issuing of new licenses that firms need to operate in this country it could delay c

well i'm oddly defiant message from china's commerce ministry on thursday a spokesman was pressed several times by foreign journalists for his reaction to a report in the overseas media detailing it seems how china has essentially backtracked on just about everything it's so far agreed to in these ongoing trade talks with the united states talks that began more than ten months ago while the official simply said that when china gives its word it sticks to it but he also repeated that china is prepared to take countermeasures if the united states presses ahead with new targets for a volatile itoshi one the us has assigned a lot of labels such as backtracking on going back on one's wood and so on lots of promises have been foisted on china the chinese side has valued credibility and has kept its promises this has never changed analysts say there is now a grim realisation here in beijing that that is going to happen there is precious little time left for chinese negotiators to avoid that it's possible there could still be a surprise deal if there isn't and the talks break down the question. m

well a mildly defiant message from china's commerce ministry on thursday a spokesman was pressed several times by foreign journalists for his reaction to a report in the overseas media detailing it seems how china has essentially backtracked on just about everything it had so far agreed to in these ongoing trade talks with the united states talks that began more than ten months ago where the official simply said they were in china gives its word it sticks to it but he also repeated that china is prepared to take countermeasures if the united states presses ahead with new tariffs dr alex had already to quote the u.s. has assigned a lot of labels such as backtracking on going back on one's word and so on lots of promises have been foisted on china the chinese side has valued credibility and has kept its promises this has never changed analysts say there is now a grim realisation here in beijing that that is going to happen there is precious little time left for chinese negotiators to avoid that it's possible there could still be a surprise deal if there isn't and the talks break down the q

after he more than double tariffs on two hundred billion dollars worth of chinese goods china's commerce ministry has vowed to respond with similar countermeasures as adrian brown reports from beijing . it was just after midday beijing time the china and united states moved closer to a full blown trade will not that many people seem to notice in this busy beijing market shoppers we spoke to say the trade war hasn't so far affected what they've by but it has affected the way some now think about the united states and nationalist sentiment is building it in which it isn't it is the america's normal practice to bully others how to money countries always do this buttoned down but what can tell us when we get strong enough america we're not even think about bombing us he's referring to what happened twenty years ago this week when u.s. missiles struck china's belgrade embassy during nato's bombardment of yugoslavia killing three chinese journalists nato called it an accident china called it an act of war and still does here in china it's a year of political and emotionally charged anniversaries the mo

beijing has expressed regret over the decision a brief statement from china's commerce ministry says it will respond with countermeasures but does not offer details chinese vice premier li and u.s. treasury secretary steven richard will meet again on friday. we're trying as top negotiators said it doesn't serve the interests of either nation or. i've come here in good faith given the current particular circumstances i want to reasonably and frankly exchange opinions with the u.s. side but china believes given the current circumstances adding further tariffs is not a good way to solve any problems it's not favorable for china nor is it favorable for the us nor is it favorable for the world so our way out of this whole thing is a principled solution to realistic problems which finally points in the direction of the only result of cooperation north korean state media has released pictures of a missile test after south korea detected a weapons launch on thursday can john oversaw the test that took place in the country's western region it is the second missile test in under a week the lau

billion dollars worth of chinese imports have increased from ten to twenty five percent china's commerce ministry says it regrets washington's decision and val's to respond with similar countermeasures the chinese vice premier and the u.s. treasury secretary will meet again on friday so as the talks continued in washington the top negotiator for china set a tariff doesn't serve the interests of their nation or. i've come here in good faith given the current particular circumstances i want to reasonably and frankly exchange opinions with the u.s. side but china believes given the current circumstances adding further tariffs is not a good way to solve any problems it's not favorable for china nor is it favorable for the us nor is it favorable for the world so our way out of this whole thing is a principled solution to realistic problems which finally points in the direction of the only result of cooperation. i have no idea what's going to happen i did get last night a very beautiful letter from president xi let's work together let's see if we can get something done but they renegotiated the deal i

used to the old by jim brown has more from beijing well i'm oddly defiant message from china's commerce ministry on thursday a spokesman was pressed several times by foreign journalists for his reaction to a report in the overseas media detailing it seems how china has essentially backtracked on just about everything it had so far agreed to in these ongoing trade talks with the united states talks that began more than ten months ago while the official simply said that when china gives its word it sticks to it but he also repeated the china is prepared to take countermeasures if the united states presses ahead with new tariffs for a volatile itoshi one. the u.s. has assigned a lot of labels such as backtracking on going back on one's word and so on lots of promises have been foisted on china the chinese side has valued credibility and has kept its promises this has never changed analysts say there is now a grim realisation here in beijing that that is going to happen there is precious little time left for chinese negotiators to avoid that it's possible there could still be a surprise deal if ther

as spokesperson for china's commerce ministry came out and he and notably said that by going after wall wave the united states was creating its own global national security risk so it could have serious consequences over all but he also said that china is still open to trade talks as long as the negotiations are fair and build on mutual respect. so rachel we know that right now this is going to be a huge impact to the u.s. software business how how severe is this going to be for the broader u.s. tech market well like you mentioned they stand to lose around $20000000000.00 themselves just from semiconductors so this is something that could have serious reforge cautions and it remains to be seen just how those companies will continue to act if they start to lose profits as a whole and if the united states government will step in to help them out or will change it. changes the dealings with wall wave based on how those profits line up. our correspondent rachel blevins with the latest thanks for your time thank you. the party of the indian prime minister narendra modi is on track for a stan

mine is commerce ministry hasn't yet said who would be on the blacklist or what new measures the listing tales. meanwhile the french state is pendnding a crackdown o on a slightly overlooked sector of the economy. the makers of disposable wipes. the government soon plans to introduce legislation that would make producers pay for the whites heavy environmental cost. my julian has more. they're impossible to recycle yet wet wipes are everywhere used to clean households -- babies. forty seven thousand are used each year in the european union the problem is there a nuisance to the environment. we tested the doc -- this was a lot of plastic in them often polyester school sometimes there's also vesco's fiber and cellulose. not so that complicates recycling because the different types of plastic have to be separated because of that has to do the different chemicals that are used. those are very hard to separate default position. thanks you could use it as a body of it.. whatat makes matters even worses that they're often flushed inn the toilet? which disrupts waste water treatment. this is the

we haven't had that response yet nick when it comes it'll come via the website of the chinese commerce ministry here in beijing and the question is how proportionate will that response be on the issue of tariffs china doesn't really have much room for maneuver because of course it exports far more to the united states than the other way around so it doesn't have as many potential targets as the united states does but it could still make life actually quite difficult for american businesses here in this country could delay the issuing of new licenses that u.s. companies and other foreign firms need to operate in china it could delay custom clearances on u.s. imports and of course it might decide to start selling that large chunk of u.s. debt it owns in the form of u.s. treasury bonds but a lot of analysts argue that actually that would actually backfire on china and hurt china's economy it's difficult to know nick just how you know worried china's leaders are right now because if there was a change in china's negotiating stance at the direction of president xi jinping who had felt it seems that

officials is defiance mixed with indignation at the regular briefing given by an official at the commerce ministry on thursday the spokesman said when china gives its word it sticks to its word by that he was referring of course to the claims of suggestion by the trade representative robert light hisor in the united states that china has written a so far on just about everything that china and the united states had agreed to in more than ten months of often torturous negotiation now china is saying that there has been a deal done on intellectual property rights it's going to respect that and it's going to set up a mechanism to protect the i.p.r. of foreign companies and u.s. companies operating here in china but it seems that the sticking points nick in these negotiations are the subsidies that china wants to continue giving its big enterprises that are involved in what you might call technologies of the future things like artificial intelligence robotics that sort of thing and also. an agreement on a mechanism to actually police this deal if and when it is signed now china is saying we don't need

billion dollars worth of chinese imports have increased from ten to twenty five percent china's commerce ministry says it regrets washington's the session and val's to respond with similar countermeasures u.s. president donald trump has just tweeted that there is no need to rush the talks and he hopes china won't try to redo the deal will the new twenty five percent tariff applies to a wide range of products from chemicals and processed food to electronics that fall under five thousand seven hundred categories but those that. chinese ports before the four g.m.t. that line will still be subject to the original ten percent duty the i.t. industry took the biggest hit more than twenty billion dollars worth of internet modems and routers and twelve billion dollars worth of printed circuit boards will become more expensive furniture and lighting products also parts vacuum cleaners and building materials are also on are also high on the list of imports subject to higher duties adrian brown reports from beijing. it was just after midday beijing time the china and the united states moved closer to a full

and talks that seem to be headed for an agreement china's commerce ministry said on tuesday that vice premier lou will still attend trade talks in washington on thursday and friday adding china will respond in kind to the increased terror as a vice president or mayor prepares for his u.s. trip the trump administration has. paperwork to raise chinese tariffs on friday according to the wall street journal the office of. the u.s. trade representative the tariff are right now being raised due to quote lack of progress in the trade talks so dead. you know right now these trade talks this is simply an act of aggression from the us party and i mean you're negotiating a billion dollars worth of trade deals that could impact china and the u.s. for decades to come so this really isn't something like a book report that you can just put a deadline on friday and this is the thing that we've discussed previously on the show you know any sort of negotiating manual that you could get from an airport bookstore would tell you this is probably not the way you want to do a really major negotiation exactl

china trade fight the spokesperson for china's commerce ministry says they are not aware of any plans for any further trade talks with the united states spokesperson golfing effectively rebutted u.s. treasury secretary stephen minucci and who had said in a congressional hearing that its team of u.s. negotiators was likely to go to beijing at some point in the near future meanwhile china has noticeably reduced their holdings of u.s. treasury bills to their lowest level in 2 years in march chinese official sold off $20500000000.00 worth of t. bills lowering their holdings to just over $1.00 trillion dollars over the past year in china reportedly has reduced the treasury portfolio by more than 5 percent some market watchers have speculated that china may choose to more dramatically reduce their holdings to retaliate against u.s. tariffs stay tuned. in the trade war has spilled over into yet another sector as president donald trump has signed an executive order effectively banning weiwei and other companies referred to as foreign adversaries in the united states here to take a deeper dive

well a mildly defiant message from china's commerce ministry on thursday a spokesman was pressed several times by foreign journalists for his reaction to a report in the overseas media detailing it seems how china has essentially backtracked on just about everything it had so far agreed to in these ongoing trade talks with the united states talks that began more than ten months ago when the official simply said they were in china gives its word it sticks to it but he also repeated that china is prepared to take countermeasures if the united states presses ahead with new tariffs trayvon she what the u.s. has assigned a lot of labels such as backtracking on going back on one's word and so on lots of promises have been foisted on china the chinese side has valued credibility and has kept its promises this has never changed analysts say there is now a grim realisation here in beijing that that is going to happen there is precious little time left for chinese negotiators to avoid that it's possible there could still be a surprise deal if there isn't and the talks break down the question will

we had news just a short while ago from the chinese commerce ministry it says with regret is going to have to apply countermeasures and that means chinese tariffs on u.s. imports we don't know how much and we u.s. hn't know exactly what goods ill be targeted. to it's likely to include u.s. agricultural products. machinery, and perhaps even energy that is to say natural gas. however it's worth noting that the mood music coming from the foreign ministry is still pretty constructive. it's saying that it still hopes the late as this afternoon. it was saying that the u.s. will meet china halfway on a deal. >> liz, we want to talk about another big story in the region. north korea's rising tension with the u.s. the u.s. as you know says that the military fired three missiles yesterday. and the second launch in a week. the u.s. revealed that it seized a north korean cargo ship in violation of economic sanctions. this morning north korea says kim jong un is telling his military to keep full combat posture, their words so what can you tell us about this? >> well, let's start with those missile

at the same time in the last hour we have had the chinese commerce ministry put out a statement sayingy to impose countermeasures if the u.s. goes ahead with its increase in terms in the first minute of friday. it feels like a showdown. bill, there have also been developments in iran.

the chinese government, the commerce ministry hasn't formally announced what they're going to do, youn bet it's going to hurt american products that come into this city. what china has done is put a number of tariffs on the vast majority of american imports to china. they could round out and do 20 billion more or so. that's going to hit all american products. what they could do moving forward is increase the tariff rates in entrixistence. an american firm trying to license a product in china, they could delay that process and hurt american company's bottom lines. you're an agricultural export, shipping perishable goods, food items to the ones on the dock behind me. customs experts let it sit on the dock, let the food rot, and you don't make money as an american company. china is going to find a way hurt american companies as a result of the trade war. >> hard to imagine what that leverage might be. it's going to be a fast two hours. >> supporters of the president say there's a $20 trillion economy in the united states, and those 10% tariffs, absorbed fine by the u.s. economy. the econ

they are quoting academics that are spouting the party line as well as a commerce ministry spokespersonrom a month ago. even though it is the front page of today's "china daily," there is no news. that leads to more speculation there is an impasse. david: probably why the pictures are so big to make up the real estate. stephen engle, live out of beijing. is still with us, jpmorgan asset management. let's have a look at how the uncertainty is affecting the growthcause you look at reports out of recent reports, south korea, hong kong yesterday. not just low. shockingly low. should i be worried economists don't seem to have a proper grasp of how bad the slowdown is in some places? marcella: we do see a divergence between china data and north asia, korea and taiwan. korea and taiwan earnings reports have received downgrades, as well. economistsrd, what would focus on as well as divergence gap, because we see tes in the chinese economic data. enough to trade we are but that suggests not in the state of urgent need for the imminent shift to tightening. in the next month, we will focus on enou

and this announcement by the commerce ministry seems to be targeting those u.s.nctions from the chinese side so it is really unclear right now what the specific measures are going to be and when they would be implemented, but this is the big fear within the international business community here that individual companies and individual people could be targeted by the chinese state. guys >> eunice eun, thank you. >>> joining us to talk about the market impact of all this, john stoltzfus and mike santolisanto, michelle myer. michelle, first to you what is the growth impact of all of this >> so the more that we get into trade war now with the threat of tariffs, on mexico, escalation potentially between the u.s. and china, all that does is create a high level of uncertainty and it creates a challenge for the u.s. economy. so q1 gdp growth was strong. above 3% growth. q2 is tracking lower with financial conditions tightening as we're seeing with the stock market selling off, with greater uncertainty. we start to worry about what the trajectory will look like going forw

at the same time in the last hour we have had the chinese commerce ministry put out a statement saying they are ready to impose countermeasures if the u.s. goes ahead with its increase in terms in the first minute of friday. it feels like a showdown. bill, there have also been developments in iran. bill: the european government has given -- iran has given the european government to throw it a lifeline to see the benefits from the 2015 nuclear deal president trump left a year ago. u.s. sanctions since president trump left the agreement have crippled iran and the government there is now saying they may stop respecting limits on uranium enrichment and storage of enriched uranium if the europeans cannot come up with a better plan. david: the iranians have some leverage in europe, but compared to the united states, is it likely european allies will split with the united states on this? bill: this puts european countries in a bind. major european countries will not risk sanctions. that depresses investment in the ability of consumers in iran to get basic goods. it is unlikely the europeans c

china's commerce ministry saying it would impose necessary countermeasures but offering no further details.>> this is leverage to keep everyone at the table.>> reporter: meantime offer exporters reporting that they are already being hit by the trade war with china.>> the 60% of business i lost this winter once to canada. not only did the trade dollars flowing to canada but the profits from the trade dollars flowing to canada and don't flow into the united states. i don't understand the purpose of the exercise. >> more tariffs could be coming well today president trumps that he has already begun the process to put an additional 25% tariff on $325 billion of goods. >>> the impact of the escalating trade battle is being felt on the local level. we looked at how local bike shops are expecting to take a hit.>> we got email from our vendors notifying us that pretty much everything in the industries going to go up.>> report express in downtown san jose say five out of six products sold in the store are imported from china. the label made in china might better read cost more because it's from chin

weighed in, the commerce ministrythat china opposes unilateral sanctions against chinese entities and the foreign ministry went one step further saying china will go do great lengths to protect rights of its businesses one of the reasons why the government with would want to have a strong reaction is because huawei isn't seen as just any old company it is a national champion that has been viewed as one that has been very successfully globally and seen as critical as part of china's effort to become a technology leader worldwide. so an attack on huawei is really not an attack on a kwp bcompany on china's hopes to become a super power. >> this is a big story separately, one of china's most influential papers is ratcheting up the anti-u.s. rhetoric. >> reporter: that's right. it's the people's daily, which is seen as an authoritative voice of the communist party, accusing the u.s. of bandit logic, bandit-like behavior. one of the reasons we've been seeing all this criticism and doubling down is because the pressure that

after he more than double tires on two hundred billion dollars worth of chinese goods china's commerce ministry has vowed to respond with similar countermeasures. the chinese a former president of interpol has been formally charged and will face trial for corruption in challenge and chinese prosecutors accuse main hallway of abuse of power and taking bribes mangere became interpol's chief in twenty sixteen disappeared in september while on a visit to china later confirmed that he had been detained on suspicion of corruption. the french president has paid tribute to two special forces soldiers that were killed during an operation to rescue hostages in bikini fasten the palace says four hostages were rescued and are safe include an american a south korean and two french citizens. the deputy head of the revolutionary guard in iran is dismissing u.s. threats of military action it comes as a group of b. fifty two bombers sent by the u.s. to counter what it calls a credible threat from iran have landed at an american air base in qatar japan is accusing north korea of violating u.n. resolutions follow

we are expecting the commerce ministry to come up with a set of measures because that's what they havethroughout the trade war. a lot of different -- there's a lot of different ways china can and will retaliation against the united states. the first thing you look at is american imports. when america sends things to china through ports in the east coast city. most of those products are already facing tariffs. the chinese government could raise the rates on the tariffs and make the products more expensive to import here and chinese buyers would go elsewhere. they can do other things to hurt the heartland of the u.s. we have been reporting about soybeans. it might seem obscure, fwu u.s. ships billions of dollars of soybeans from the u.s. to china every year. there were restrictions put up and chinese buyers stopped buying them. could they come back up? it's a possibility. the odds of a deal working out here is the question we have. let's play sound with the top chinese economic negotiator. >> translator: at present, both sides reached consensus in many aspects, but frankly speaking, diff

china's commerce ministry said beijing will impose tariffs of its own if the u.s.acks up tariffs of 25% adding an escalation in bilateral trade frictions is not in the interest of both peoples or that of the whole world. all this as the 11th round of negotiations begin today. on wednesday the president suggested the chinese were trying to run out the clock on his administration saying they want to negotiate with joe biden or another weak democrat. the president said he's happy with tariffs filling american coffers calling them great for the u.s., not china. remember, china does not pay for tariffs. the bill is paid for americans who import it at the port of entry, that means you too eventually. hours before china's warning press secretary sarah sanders said this to reporters. >> look, we've got indication that they want to make a deal. our teams are in continued negotiations. >> the white house declined to comment again after china's threat of retaliatory tariffs. you know, the thing is, though, we import so much more from china that the americans have the leverage

s tariffs kicked in, the chinese commerce ministry made an announcement saying that it would take all necessary counter measures so far the ministry hasn't detailed what the counter measures are, and that's led to a lot of speculation here that the chinese leadership is still hoping for a last minute agreement. there is an expectation that the retaliation will include tariffs, raising tariffs to 25% on $60 billion of american goods, possibly cancelling large purchases of agriculture and energy products, plans to lower car tariffs and also to open the door to more american financial institutions president trump and president xi are expected to speak on the phone soon, and this comes after president xi jing ping had sent a letter to president trump of which the president trump had described as beautiful some people here have been seeing that as a vanity play by the chinese, and there is, though, ryan, still a possible window for the negotiations to -- for the negotiators it to find a solution. that's because the tariffs are being assessed in the u.s., but they are looking at products th

the commerce ministry said if the u.s. impose additional tariffs, they'll have countermeasures as well. they also said the fact that the vice premier attending these discussions is indeed a sign of sincerity. tariffs are set to move up from 10% to 25% on $200 billion worth of goods at 12:01 a.m. friday eastern. so that's not very far away. the trump administration has threatened tariffs on another $325 billion as well. you can imagine the market has not responded well. it's been a week of losses across all of the sectors, materials have led the decline. not as heavy a week as back in december when the markets recoiled to the tune of about 7% but certainly gripped in fear. the chinese markets have felt it a little bit more than u.s. markets. >> live from london, thanks so much. >> coming up, everybody, axios' jonathan swan has a look at this morning's "1 big thing." and coming up on "morning joe," t the president hits the road. a busy "morning joe" is just moments away. "morning joe" is t moments away i've booked your showe

commerce ministry has specified. when they retaliate, it will take a couple different forms. number one is tariffs of their own. they already have put tariffs on the vast majority of american imports that come through ports like the one behind me . that would mean chinese buyers could look to buy other products instead of american. that could hurt the u.s. economy. you have other things they could do, market access issues, you're a pharmaceutical company from american trying to get a licensed product in china, they could delay that, and there's other more informal things if you're an agricultural exporter, sending perishable goods to docks behind me, maybe they set the perishable goods on the dock, and it rots. and there's a number of ways they can hit back. they will try and hurt the u.s. economy in the same way the u.s. is hurting the chinese economy. that's what a trade war is about. >> the president said he got a beautiful letter from xi jinping, what will the message be today. >>> president trump none too pleased about the subpoena don jr. received from the republican co