Donald Trump has threatened a new 50% tariff on Chinese goods, escalating the ongoing trade war. This is in addition to existing tariffs, potentially pushing the total rate beyond 100% for certain goods.
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00:00What is this Trump tariff and why is it on war with China?
00:03Here's the detail that I want to bring to you.
00:06This is a new tariff that Donald Trump has threatened.
00:09It's a higher 50% tariff.
00:11This is apart from the reciprocal tariff of 34%
00:14when he was announcing for all countries, 34% for China.
00:17This is apart from the 20% tax that has come in
00:22to curb fentanyl flow from China
00:24into the United States of America.
00:25So this clearly raises the bar when it comes to Chinese goods
00:29and the tariffs against them.
00:30Remember, usually the baseline tariff has been 10%
00:34and he's given it to many countries, including New Zealand.
00:36However, when it comes to 34, then a 50%,
00:40just imagine the kind of the additions that are coming in
00:43with regard to tariff against China.
00:45Therefore, perhaps the highest in many ways.
00:48Total tariff rate, therefore, goes beyond 100% as well
00:52in certain cases.
00:54So pre-existing tariff from first term was between 7.5 to 25%
00:59and it could go beyond 80% as well
01:01when it comes to China on certain goods.
01:03So that is why one of the reasons that China is threatening
01:07in turn saying this is economic blackmail,
01:08we'll do it for that.
01:10And Donald Trump says, I'll impose a higher tariff.
01:13But it's not just about China.
01:15For example, Germany has also said,
01:16this is a nonsense tariff
01:18against the United States of America.
01:20Europe, remember, could be very important
01:22because that is where European Union
01:24could be facing a massive impact,
01:26a higher tariff by Trump administration.
01:28More in this report.
01:29I don't want anything to go down,
01:32but sometimes you have to take medicine to fix something.
01:36The world is getting a taste of Trump's bitter medicine
01:40and he's showing no signs of reversing course.
01:44But there is some pushback.
01:46After striking back with a slew of countermeasures,
01:49including extra levies of 34% on all US goods,
01:53China is calling Trump's tariffs protectionist bullying.
01:59The Chinese government has made its solemn position clear
02:02regarding the US abuse of tariffs.
02:04The United States, under various pretexts,
02:07has imposed tariffs on all its trading partners,
02:09including China,
02:11which severely infringes upon legitimate rights
02:13and interests of other countries,
02:15seriously violates the rules of the World Trade Organization,
02:19gravely undermines the rule-based multilateral trading system
02:23and disrupts global economic order and stability.
02:27The Chinese government strongly condemns
02:29and firmly opposes such actions.
02:31The US approach is a typical act of unilateralism,
02:34protectionism and economic bullying,
02:36which causes harm to others while backfiring on itself.
02:41Europe has reacted with a mix of criticism,
02:44economic concern and calls for unity within the European Union.
02:53Of course, we did not agree with the choice of the United States,
02:57but we are ready to deploy all the instruments,
02:59negotiations and economics needed to support our businesses
03:03and the sectors that will be penalized.
03:07Germany's economy minister was among the first European officials
03:11to voice strong criticism,
03:13labeling the US move as dangerous and counterproductive.
03:21The argument that Trump uses as the basis for his decision
03:25simply does not apply.
03:27So we shouldn't get involved in this argument at all.
03:29And this is linked to the fact that talk of reciprocal tariffs,
03:33that is such countermeasures against advantages
03:36that Europe or the world has over the USA,
03:38is simply wrong.
03:40They are preventive measures.
03:41They are isolationist measures
03:43that he has taken with serious damage to the global economy.
03:46The stock markets are already collapsing
03:49and the damage could become even greater.
03:52The US decision to raise tariffs against Europe
03:55and the rest of the world is extremely unfortunate,
03:59but the EU stands united right now.
04:02We're in favor of a negotiated solution,
04:05but of course stands ready for countermeasures
04:07that are well targeted.
04:10Voices of discontent are also growing louder
04:13within the United States.
04:16Billionaire fund manager Bill Ackman,
04:18who endorsed Donald Trump's run for president,
04:21said the US leader was losing the confidence of business leaders
04:25and should pause his trade war.
04:29Elon Musk himself is pushing for zero tariff zone
04:33between US and EU.
04:35I hope that the United States and Europe
04:39can establish a very close partnership.
04:43We obviously are, there's an alliance already,
04:46but I'm hopeful that there can be a very close relationship
04:49with America and Europe.
04:52Goldman Sachs has raised the odds
04:54of a US recession to 45% from 35%.
04:58The second time it has increased its forecast in a week.
05:01Amid a growing chorus of such predictions
05:04by investment banks due to an escalating trade war.
05:08At least seven top investment banks
05:10have raised their recession risk forecasts.
05:13With JP Morgan putting the odds
05:15of a US and global recession at 60%.
05:19On fears that the tariffs will not only ignite US inflation,
05:23but also spark retaliatory measures from other countries.
05:28Bureau report,
05:29Bureau report, India Today.