San Francisco, Ali Woods, Kyra discussed on Marketplace All-in-One


In san francisco i'm ali woods sitting in for kyra doll it is wednesday july eleven thanks for joining us today we begin with and this should not be a surprise tariffs and trade we have been talking and talking about a potential trade war and how it could get out of hand and what it might mean so but did it just get really real last night the trump administration announced its tariffs on china would increase fivefold and no surprise here either beijing said it would respond in kind and increasingly economists and market signals suggest actual tangible affects like the kind you may start to notice from washington marketplace it's got tongue reports bigger and tariffs against chinese imports hit industrial innards compressors engine parts boring machines yeah boring around to if it happens taxes chinese fridges furniture seafood about half of everything china sends here this is a new ballgame game that's the kind of lynn reaser at point loma nazarene university in san diego to her falling commodity and metals prices today suggest factories slowdowns are coming because of tariffs and the dollar is up making us exports expensive and less competitive well so we'll be fighting and four goals overseas so it's gonna be harder road for exporters in the next several months big investments by us companies are being scaled back or delayed by trade and certainty that's according to the latest federal reserve meeting minutes and here's the math when you add up the threaten tariffs coming from the us china europe and everywhere global risk has really stepped up says adam slater at oxford economics told me about a hundred billion bowl with the world trade tariffs he says that helps explain some global market wooziness we're seeing today but economists mickey levy at bernburg capital markets says investors can overreact and when they see unfavorable heads line about new proposed tariffs the shift gears but the underlying economic and profit fundamentals are positive things could stay that way but other see this trade spat at or near an economic turning point i'm scott tong for marketplace if you think the conversations over tariffs have been testy i mean remember when canadian prime minister justin trudeau said that canada would not be pushed around well you should have seen the pushing around in brussels belgium today the first day of a summit of the north atlantic treaty organization at a breakfast meeting the president's slammed other members of the military alliance for not spending enough on defense almost a tremendous amount of money years back where delinquent for them concerned because united states fame for them and that was just at the photo op here with more on the nato summit is marketplace european bureau chief stephen beard hi steven heller molly steven tell us how our relations i mean how did the you know these were very blunt words delivered by president trump how did they go down with other nato members well it was it was pretty bruising stuff even by president trump standards but i think you know to some extent the other leaders arrived in brussels already in the brace position they knew an onslaught was coming and come it did president trump has made pretty clear the us is very dissatisfied and has been for many years about the huge disparity in defense spending there's no doubt that the us counts for the lion share of the alliance is total defense spent something like seventy percent so many analysts say the us is quite right to feel aggrieved nevertheless things are changing the european allies are beginning to spend more on defense in some cases a lot more germany in fact has increased its defense budget by thirty percent over the possible years analysts say that some president trump can claim some credit for this increase well let's let's talk about germany for a moment because not only did the president have strong words for germany raised this kind of other issue that's been it sounds like bubbling up for a while it here i what he said germany's totally control the russian because they will get it from sixty to seventy percent of their energy from russia at a new by blood and you tell me because i think it's not and i think it's a very bad thing for nato so what is this pipeline that president trump talked about and why is it such a source of irritation this new pipeline bypasses poland and ukraine to get russian gas directly into western europe trump says this pipeline puts germany on.

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