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china has hit back at the US once again
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with 125% tariffs on American goods it's
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the latest in a more than week-long tip
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for t as rates of tariffs have slowly
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crept up into the triple figures as it
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stands US levies on China are now at a
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massive 145% so that's more than 90
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percentage points higher than this time
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last week and a spokesperson for China's
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Ministry of Commerce has called Trump's
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approach to tariffs a numbers game that
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will become a joke the Chinese premier
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has said that the world economy has been
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dealt a heavy blow by the tariffs
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already for the rest of the world caught
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in the middle of a faceoff between two
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multi- trillion dollar gerillas there
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are some difficult diplomatic decisions
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to be made european economies are on the
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whole entangled both with the US and
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China but there are some interesting
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diplomatic shifts going on as well so
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today Spain's PM Pedro Sanchez told
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President Xi in Madrid that Spain sees
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China as a partner of the EU and a
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German government spokesperson has said
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that Berlin is braced for economic
1:00
disruption from massive escalation while
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the pause announced on Wednesday has put
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a hold on most global tariffs and
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markets are far more buoyant than they
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were on Monday the sanctions on China
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alone could produce huge collateral
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damage one sector which is particularly
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worried is big tech for instance the
1:17
cost of smartphones manufactured in
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China and sold in the US could rise
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massively one analyst Dan Ies has
1:24
suggested that the handset could cost as
1:27
$3,500 now Trump seems convinced the
1:30
iPhone manufacturing could just be moved
1:31
over to the US but it's hard to see how
1:34
because the phone itself is made up of
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hundreds of complex components sourced
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from international supply chains and the
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uncertainty is doing something unusual
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and worrying to the US economy so yields
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on American bonds are rising while the
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dollar itself falls and they're normally
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connected and that's worrying because
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normally higher demand to buy up
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government bonds should strengthen the
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dollar but the divergence suggests that
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investors are taking safer bets but also
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betting against the currency and all the
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while the chaos and uncertainty around
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tariffs is hitting Trump where it hurts
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him the most in his approval ratings so
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public approval for his handling of the
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economy in the US has dropped from 50 to
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44% and if you're wondering what the man
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himself has been up to today he's been
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sharing videos of Hillary Clinton on
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Truth Social this caps off the week that
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started with massive bloodletting from
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global markets and ends with the two
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largest global economies facing off in a
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trade war more dramatic than anything
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we've seen in modern times so who knows
2:34
what will happen next week but for all
2:36
the updates on this story as it happens
