Dan Mitchinson: US correspondent on Donald Trump unleashing new tariffs on China

The chances of a full blown trade war between the US and China is looking more and more likely.

China will be hit with an additional 50 percent tariff from tomorrow, taking their total to 104 percent. 

US correspondent Dan Mitchinson says the Nasdaq has taken another hit - and Chinese trade officials have made it clear they plan to 'fight this out'.

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Episode Transcript

Speaker 1 (00:00):
International Correspondence with Ends and Eye Insurance Peace of Mind
for New Zealand business. Dan Mitchison's UIs correspondent, Dan Welcome, Well,
Hey Ryan, good afternoon, Good afternoon. So let's talk about Trump.
He's given a speech to Republicans at a dinner. I
saw him in his tux a short time ago. What's
he been saying about this new tariff rate.

Speaker 2 (00:23):
Well, he's saying it's working. And as you mentioned, it
has just gone into effect with China about forty minutes ago.
And I'm looking at the markets right now here in
the US to see how they're reacting. In the Dow
and the Nasdaq not good, down about two and a
half percent or so. And I mean we've wiped out
several trillion dollars in the market, at least the value
of stocks since this Liberation Day was first announced. Right now,

(00:46):
we've got reciprocal tariffs that are going into effect or
that are in effect in fifty or sixty other countries.
I know with New Zealand it's going to be about
ten percent right now. And I think China's Commerce Ministry
has said they're going to just fight this out to
the of the trade war and they're going to continue
to stand up to Trump. So we're going to see
is what's going to go back and forth? I think

(01:06):
between the two countries, tit for tat or if they
can come to some kind of reasonable negotiation.

Speaker 1 (01:12):
Can Congress do anything about it. We're going to look
at this a little later on the show, but I mean,
in short, they can, but then he can veto whatever
they do.

Speaker 2 (01:19):
Right well, he can. I mean you've got right now,
you've got about a half dozen maybe more Republicans that
are trying to sign on to this bill that would
restrict what the White House could could do. Ultimately, they
would like to see these tariffs expire after forty days.
There was a rumor going around with the stock market
yesterday and on the floor of the Stock exchange that

(01:40):
the President was going to back off on the tariffs
for a ninety days. The White House called that fake news.
But even that announcement, even though it wasn't true, I mean,
made the market shot up by about a thousand points
before it came back down again. So I think anything
that we see is going to be long term manufacturing.
This isn't going to happen overnight. I mean, businesses are
going to take a wait and see attitude to find

(02:00):
out how these negotiations are going to continue, because they
can't just you know, build a new plant in thirty
sixty or ninety days. These things take years to to formulate.

Speaker 1 (02:08):
Now, finally a judge is wanted, I pay the Associated
Press be given access back to the White House. Does
that mean it's going to happen, Well, I don't know.

Speaker 2 (02:17):
It's it's it's interesting because an AP reporter photographer will
turned back from joining the reporting pool this evening, just
a couple of hours after this judge made this decision.
And this is because the White House was angry that
the AP refused to call the Gulf of Mexico by
President Trump's preferred name, which is the Gulf of America.
And you know, the government and the judge of this

(02:37):
has said, you know what, the AP was not demanding
extra special access, and the judge agreed with this. They
were saying in the trial that what it wants and
all it gets out of this ruling is a level
playing field, which seems fair enough. And you know, Trump
and his aides have barred the reporters from dozens of
these events since back in February right now, and the
AP's you know, kind of been one of the main

(02:58):
news gatherers and recent horses for pool coverage over here
for more than a century now, so it was a
big win for them, all.

Speaker 1 (03:05):
Right, Dan, thanks for talking to us. I appreciate your time.
Dan mitchsen Our, US correspondent. For more from Hither Duplessy
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