critical in terms of its of america's allies for by refusing to permanently exempt the european union japan canada from steel and aluminum tariffs he has threatened to impose tariffs on on auto imports and on and on top of all this there is no being threat of of escalation of us trying tensions so right now there is there's a lot of confusion in terms of u.s. trade policy but what this confusion is doing is making america's allies we think their relationship with united states for example the transatlantic relationship which has been the bedrock of. western security that process landing relationship nom is being openly debated and question in europe both mr chinese as you may imagine really in moscow not big fans of that. transatlantic secure. relationship we tend to think that it sometimes undermines security rather than strengthens it but putting that aside the state of disarray do you think it presents any opportunities for countries to form you know cross. you know cross camp ties because he you mentioned before and up until recently the trade negotiations were stalled primarily because of the

. >> now one interesting footnote, the european union, mexico, japan, canada all do not allow hydropanic crops to be certified or, and where they could garner a much higher price. >>> weather around here tonight, beautiful u. the next couple of days, good for anything outside. good normal weather in may. low 50s currently outside. a little bit of cloud cover beginning to spill into san francisco bay. 55 in concord, 53 in san jose. tonight upper 40s for most of the bay area including 47 in the tri valley. 48 for san rafael and 49 in san jose. we get pretty pleasant river more. 77 degrees. same story for san jose. same thing for santa rosa. 64. fog, low coverage pushing inland tomorrow. a light flow keeping temperatures very close to the averages i just showed you. and welcome to the dry season. may begins a run of five straight months where we average less than one inch of rain per month. low pressure area moving out. the same low dancing around the same area. now gave rain to phoenix, tucson, los angeles, places that tip cent don't see that low. ridge of high pressure is moving in. since

japan. he exempted the european union, canada and mexico at the time.oday he is lifting those hasptions, saying the e.u. not done enough to import quotas and canada and mexico had not done enough progress on nafta. the decision by the administration has caused swift condemnation from all the allies and retaliation. they published a list, including harley davidson motorcycles and bourbon whiskey from kentucky. canadians will impose tariffs on american-made steel and aluminum, things like maple syrup and beer cans. hurtmists say it will not the economy now, but could if we see escalation. nobody knows where we are going from here. ramy: it seems, looking at these leaders, there is reticence in this. justin trudeau said it is inconceivable there could be any kind of security issue between the united states and canada. they do not want to be doing this, do they? it seems they have to take a stand. michael: politically, they have to. it would not play well in their home countries if they were seen as kowtowing to donald trump. it is difficult for the g7 fina

japan. -- a huge messn on estimates last month. we have trade tensions against all the spirit washington will be opposing medals tariffs. the european union, canadamexico also facing penalties. in hong kong, i'm rishaad salamat. in sydney, i'm haidi lun. financial raises its fundraising target to more than $12 billion that would value the company at $150 billion. this is "bloomberg markets asia." ♪ heidi: the relief rally is obvious. we get the panic sentiment over italy's starts to send side that there was an outside move we saw and global bond. the rebound is on foot and helped along by the positive my numbers. near export orders generally as well as activity bradley looking pretty positive. the best we had in eight months. trade, always on the back burner there. rishaad: trade talks going on as we speak. other things we're looking at. we're looking at the jobs report out friday. the last set of data there on employment before the fed

european union, canada and mexico. they were under a temporary exception. the wall street journal also talking about toyota has the most to lose among the big automakers because already the tariffs between japan. now, here is a live look at stocks. as i mentioned right off the bat, stocks headed lower this morning. there's a look at the dow jones. now down three quarters of a percent, almost 200 points. the s&p 500 also down about a third of a percent. but the nasdaq with some gains in technology managing to hang on to a little bit of a gain so far this morning. just a short time ago we got the confirmation the trump administration announced it will impose those tariffs on steel and aluminum imports from the european union, canada and mexico. that begins at midnight. the commerce secretary says it will be 25% on steel and 10% on aluminum. when they imposed them on other countries, president trump gave time for trade negotiations. the deadline for the temporary exemption is tomorrow. there had not been enough concessions in the negotiations. the head of the european union issued a response saying the decision to impose tariffs leaves the eu with no choice but to impose counter measures. expect