The tariff war between the United States and China rose to unprecedented levels on Wednesday as Donald Trump announced 104 per cent levies on the Asian economic giant after the latter announced it was hiking tariffs on the US to 84 per cent.
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00:00Hello and welcome, I'm Geeta Mohan and you're watching World Today.
00:20Trump's tariff war has escalated with China now slapping retaliatory tariff on the United States of America.
00:26This comes just a day after Trump imposed an additional 50% tariff on China,
00:32taking the total tariff hike to 104%, with the White House saying that the additional tariff will be effective from today.
00:41China vowed to fight to the end in an escalating trade war with the U.S.
00:45after it announced retaliatory tariffs on American goods to the tune of 84% starting today.
00:52China's move to further up the tariff is indicative of its vow to fight to the end against Trump tariffs.
00:59China had previously announced a retaliatory tariff of 34% on American goods.
01:06European Union now also has officially adopted retaliatory tariffs on 21 billion euros worth of American goods
01:14after Trump's 25% duties on EU steel and aluminium exports.
01:19Canada has already announced a position of a 25% tariff on certain U.S. auto imports from Wednesday,
01:27retaliating against U.S. President Donald Trump's levies on autos and parts imported into his country.
01:35Trump imposed a 104% tariff on China.
01:38Trump's move was in response to China's earlier retaliation to his reciprocal tariffs.
01:44Trump had also said that China cannot afford to impose high tariff.
01:48He had written on his truth social network saying China had played it wrong and that they had panicked.
02:18They are dying to make a deal.
02:20Please, please, sir, make a deal.
02:21I'll do anything.
02:22I'll do anything, sir.
02:24And then I'll see some rebel Republican, you know, some guy that wants to grandstand, say,
02:30I think that Congress should take over negotiations.
02:33Let me tell you, you don't negotiate like I negotiate.
02:36Congress takes over negotiating.
02:40Sell America fast because you're going to go bust it.
02:42The U.S. continues to impose excessive tariffs and exert extreme pressure on China.
02:52China firmly opposes and will never accept such hegemonic and bullying behavior.
02:58These tariffs come first and foremost at immense costs for U.S. consumers and businesses.
03:05But at the same time, they have a massive impact on the global economy.
03:12Especially hard hit are the developing countries.
03:16And this is a major turning point for the United States.
03:20Nonetheless, we stand ready to negotiate with the United States.
03:24Indeed, we have offered zero-for-zero tariffs for industrial goods, as we have successfully done with many other trading partners.
03:34Because Europe is always ready for a good deal, so we keep it on the table.
03:41But we are also prepared to respond through countermeasures and defend our interests.
03:47Yes, the probability of a recession in the United States has gone up significantly.
03:51I take no joy in that it becoming more likely.
03:54That will have significant effects on the Canadian economy.
03:57It's very hard for us to avoid that.
04:01Joining me from New York now is Peter Cardillo.
04:04He is Chief Market Economist, Spartan Capital Securities.
04:07Peter, thank you so much for joining us here on the network.
04:09Now, Donald Trump has followed through on his threat of additional 50% tariffs on China.
04:14This will take America's new tariff on China to an unprecedented 104%.
04:19And now China has hit back with 84% retaliatory tariff on U.S. goods.
04:24Things seem to be escalating every day.
04:26How do you see it play out when it comes to the United States of America?
04:30Well, I think, you know, obviously the trade war with China is accelerating.
04:44And of course, China this morning imposed 84% in retaliation to what the U.S. did just the other day.
04:53So these are signs that the trade war is accelerating between China.
05:02And at one point or another, someone is going to have to blink, whether it be the United States, whether it be China.
05:09And I think that probably holds water for the rest of our trading partners, the damage that's been caused in the financial markets point to a global recession.
05:28I think just from a psychological viewpoint, that's going to be hard to correct.
05:34So eventually there will be an accord.
05:39The question is, who blinks first?
05:41And of course, you know, if you go back tit for tat, that means that someone eventually is going to give in.
05:51However, there is one concern that I have.
05:54And if you look what's happening in the currency markets this morning, you'll see that the dollar is under severe pressure against major currencies, with the exception of the Chinese yuan.
06:08That indicates to me that the next move by China could very well be a currency war.
06:17And I think at that point, if that were to happen, that would probably change the cards and some sort of an accord might be forthcoming.
06:30So I think it's a matter of time.
06:33Of course, you know, I repeat, the psychological damage that's been done in the marketplaces obviously points to recession.
06:45And so it's a question of now avoiding a steep recession.
06:52And I think the quicker the trade war ends, the better, the prospects for a mild recession increase.
07:06Right.
07:07Right.
07:07So, Peter, you are very strongly suggesting that a recession is almost inevitable.
07:12And the psychological impact of the last few days now, I think, can be seen on world markets and the economy as well?
07:19Yes, and I say that because, you know, in a few days, we're going to begin with earnings.
07:33And judging from what most CEOs have been basically communicating to the market, the guidance is not going to be that great.
07:45It's going to be very guarded.
07:46No CEO is going to paint a rosy picture.
07:56And so that tells me that KPEX and other investments have already been scaled back, even though, you know, there's no anticipation of this trade war.
08:10So even if a trade war, even if the trade war, let's say, lasts for another month or perhaps two months, it would be very difficult to turn that around.
08:21Right.
08:22Meaning that first quarter GDP growth here in the States is likely to be closer to zero and followed by the same amount in the second quarter, which would put you in a technical recession.
08:39Right.
08:40Peter Cardillo, thank you so much for joining us.
08:43Thank you so much for joining us.
09:13While the RBI's 25 basis point rate cut is the headline, there's a lot more that this policy spells out.
09:23From concerns over global trade tensions and tariffs to the outlook on India's growth, the central bank has taken stock of multiple moving parts.
09:32Here's what top economists make of the RBI's broader message.
09:37Inranil, let me come to you and ask you to explain to our viewers the other elements of the MPC decision that seem to have responded to the emerging global and therefore the domestic growth scenario, as well as some specific measures, including, for example, incentives for exporters.
09:58Well, I think the broad understanding is that inflation is aligning lower.
10:05And yes, there could be some surprises in terms of the currency as well as maybe supply shocks that could emerge out of the trade war.
10:14But overall, the whole sense is that we are in a situation where global growth is tending to tank lower.
10:23There is a 104 percent tariff now on China, which means that China's determination in terms of sort of pushing global growth higher is also getting muted, which necessarily means that the crude oil prices and the overall commodity space is much weaker than was being anticipated.
10:43So those are the positives for inflation, which the RBI is taking into consideration, along with the domestic factors of the agriculture sort of being on a positive side.
10:55On the growth front, yes, it expects the recovery to happen, but the worry comes from the fact that because of the global sort of happenings and how it unravels, the growth pickup may be less than what otherwise would have been.
11:11And therefore, it needs policy support, possibly also to the extent that the fiscal support may not be something which can be front loaded and may be seen if sort of necessarily later more proactive than reactive, which necessarily means once again that the monetary policy has to lead from the front.
11:35So that that that I think is the broad understanding and the sense that the governor wanted to highlight in this monetary policy.
11:43Siddharth, the question that I have for you is, is the RBI underestimating the growth hit?
11:52Because we are yet to hear from the government in a major way.
11:56The government is pretty calibrated in its response to the tariffs because there is a full-fledged negotiation underway with the United States.
12:04But is the RBI underestimating the likely hit?
12:08Well, the tariff war is still very, very early days and it's still changing every day, if not every hour.
12:21So we don't exactly know the current situation.
12:24Some of the tariffs may actually get rolled back over in the period of the next few months.
12:28There might be some more retaliation from some of the countries and the risks are very diverse and diverse across both the spectrum.
12:42So we just don't know the scenario at this moment.
12:44But if it goes for the not so favorable scenario, at this moment what we are talking about is possibly more about the first round or the direct impact.
12:55And in a situation of some kind of global financial turmoil, we have seen earlier the second round impacts can potentially be slightly more harsh than the direct and the first round impact which we all economists tend to measure in the beginning with our Excel sheets.
13:14So that we have to figure out that over the course of the next few weeks and next few months, what is the direction this particular conversation across international borders are taking place?
13:24And I think the answer lies there.
13:26So very early days, we know very little about it.
13:30Indranil, the point that the governor made that the change in stance from neutral to accommodative means in the absence of shocks,
13:42MPC will only consider status quo or rate cuts.
13:46What is the point that the governor is trying to drive home?
13:51I think, as I even sort of alluded to earlier, I think the clear message is that with inflation having come down, remember we had been struggling with inflation for quite some time.
14:04And the previous governor had kept rates unchanged at around, say, about a 24-month period.
14:13And still we were sort of struggling to get inflation down.
14:16Now, with inflation being on the lower side, the room clearly opens up to support growth.
14:22And hence, the rate hike story is possibly out of the window, simply because one of the major reasons why inflation has come down is because of the vegetable prices and therefore the whole food space.
14:37He talks about how cereals production is better.
14:42Rabi is doing better.
14:43Kharif crops have come in.
14:45Pulse's has also, as per the second estimate, Pulse's production in India is better than the last year.
14:53And all goes to say that food inflation is not a challenge.
14:57Now, in an atmosphere where demand is relatively on the weaker side domestically,
15:02it is very difficult to also see that core inflation will be a challenge.
15:07And I think in one of the sentences, he did mention that one reason for the uptick in core is because of the higher gold prices,
15:15which is something which is beyond the ambit of the monetary policy and hence provides the adequate comfort for looking only at a cut at this point in time.
15:27And when we reach that limit, we don't actually get into a hiking cycle sooner than being anticipated.
15:37In the ongoing trade war between the U.S. and China, Beijing has taken firm countermeasures.
15:43China has banned export of dual-use items to 12 U.S. firms over security concerns.
15:49And these measures will come into effect from 12.01 p.m. Thursday.
15:55Meanwhile, China has also released a white paper to clarify about China-U.S. economic and trade relations.
16:07In the middle of this ongoing trade war, Panama Canal is another spark.
16:14U.S. Secretary of Defense Pete Hexeth on Tuesday said that he believes Panama Canal faces ongoing threats from China,
16:20but that together, the United States of America and Panama will keep it secure.
16:26China replied sternly to the U.S. Defense Secretary's statement.
16:29Chinese Foreign Ministry on Wednesday urged the U.S. to stop spreading rumors about China.
16:35We know that in reality or in perception,
16:41Communist Chinese have had designs on more control of this canal.
16:45Guys, as soon as he's done, that we say not on our watch.
16:48We will grow our partnership even more to ensure that the commitment America made to this canal 100 years ago
16:56is fulfilled through the partnership we have today.
16:59China urges the U.S. to stop spreading rumors and making trouble
17:06and to stop maliciously linking China to the canal issue as an excuse to control the canal.
17:12I also want to emphasize that compromise and concession will not bring sovereignty and respect,
17:18but will only embolden the bully.
17:19U.S. President Donald Trump's closest allies are at war.
17:26One, on one side, you have Elon Musk, the tech billionaire, who is not very pleased with the sweeping tariffs.
17:33On the other, Pete Navarro, Trump's trade enforcer.
17:36And the White House is not doing much to ease tensions.
17:39So is this just ego-driven drama or a sign of deeper fissures inside Trump's inner circle?
17:46That's our next report.
17:50The U.S. President's two most trusted people in office do not see eye-to-eye on Trump's tariffs.
17:57On one side, we have Elon Musk and on the other, Trump's trade advisor, Peter Navarro.
18:04The two men, both close to Trump, are sparring very publicly over the president's sweeping new tariffs.
18:12The feud started when Navarro criticized Musk's push for zero tariffs between the U.S. and Europe.
18:20Navarro, the architect of Trump's trade war, accused Tesla of being just a car assembler dependent on foreign parts.
18:27And the Tesla boss hit back hard, calling Navarro dumber than a sack of bricks.
18:34However, the White House did little to de-escalate the feud that has gone public.
18:40During a press briefing on April 8th, White House Press Secretary Caroline Levitt called it a classic case of boys will be boys.
18:48Look, these are obviously two individuals who have very different views on trade and on tariffs.
18:55Boys will be boys, and we will let their public sparring continue.
18:58And you guys should all be very grateful that we have the most transparent administration in history.
19:04Levitt even expressed that the White House is open to differing views.
19:08Her response raised eyebrows, especially as Musk remains one of Trump's most influential outside voices.
19:15This feud comes on the heels of a sweeping 104-person tariff on Chinese imports.
19:21The White House says this feud shows how transparent the Trump administration is.
19:26But critics believe this is as chaotic as a Trump team can be.
19:32With Rudra Rashish Kanjilal, Bureau Report, India Today Global.
19:36So, if you look at that...
19:38Well, it's not just Donald Trump.
19:40By now, we all know that when Elon Musk tweets, trolls, or just talks, the Internet listens and then explodes.
19:47From sparring with politicians to throwing shade at competitors, it's never a dull stroll when Musk is online.
19:55So, what are the viral Musk moments of the day?
19:58Let's take a look.
20:05First up, Musk abruptly ended a gaming live stream in an apparent rage quit.
20:10This came after the game's chat function was overwhelmed with trolls.
20:17They accused Musk of running the country and having no real friends.
20:27Next up, Musk has reacted to the resurrection of dire wolves.
20:32The Tesla boss shared a post on X of the cubs sleeping and added his desire to have a miniature version as his pet.
20:45And lastly, a video of Musk's 4-year-old son, Lil X, with Donald Trump has gone viral.
20:53In the clip, Lil X could be seen accompanying Donald Trump as they walked to board a chopper.
20:58Netizens did not let this go unnoticed, as many mocked the sitting U.S. president of turning into a babysitter for Musk.
21:12Big win for India.
21:1426-11 terror mastermind Taha Burrana extradition from the United States is underway as we speak.
21:21The mastermind behind the 26-11 Mumbai attacks, who was serving a 14-year sentence in a Los Angeles jail, is now on a plane to India and is expected to land tomorrow morning or afternoon after exhausting all his legal options in the U.S. against his extradition.
21:38He will be accompanied by multi-agency India teams.
21:41India today accessed an inside scoop into the extradition.
21:45Two jails, one in Delhi and one in Mumbai, are being prepared to house the terrorist.
21:50And the entire operation has been monitored by none other than the National Security Advisor himself, the Home Ministry and the NIA.
21:59Sources tell India today that Taha Burrana is being flown to India in a special plane and will be presented before an NIA court for custody tomorrow.
22:08The plane will then make a stop at an undisclosed location en route.
22:12The operation is being closely monitored by National Security Advisor Ajit Doval.
22:18Taha Burrana is accused of masterminding the 26-11 Mumbai attacks.
22:22He faces charges including attempting to wage war against the Indian government, along with charges of murder, forgery and criminal conspiracy.
22:31Very, very, very positive development, one for justice in India, of those who were killed on that horrific days.
22:44And second, it's a very good step, I think, in cooperation between America and India, in terms of criminal elements, with transnational crime, terrorism.
22:57So, it's a very good indication of the growing cooperation between the two countries on that.
23:02But first and foremost, it's that justice coming back, and with this, India will learn many things by interrogation of this gentleman.
23:13Kaur Burrana is being expedited, he's coming to India.
23:15Anybody who causes harm to India and is brought to justice by process of law, it would be a welcome move, provided it happens.
23:23It's a great danger.
23:53Some other stories from across the world in World at a Glance.
24:00Russian forces staged massive drone attacks on the Ukrainian cities of Dnipro, Kharkiv and Kramatorsk late on Tuesday,
24:09triggering fires and injuring at least 17 people.
24:12The Ukrainian Air Force said Russia launched 55 drones during its overnight attack.
24:17According to a statement on Telegram,
24:20the Air Force shot down 32 drones and another eight did not reach their targets,
24:25likely due to electronic warfare countermeasures.
24:28It did not specify what happened to the remaining 15 drones.
24:35Chinese President Xi Jinping called for building a community with a shared future with neighboring countries
24:40and striving to open new ground for China's neighborhood work.
24:44Xi, also General Secretary of the Communist Party of China's Central Committee
24:48and Chairman of the Central Military Commission,
24:51made the remarks at a central conference on work related to neighboring countries,
24:55which was held in Beijing.
24:59India and France to seal a deal soon for the procurement of 26 Rafale Marine fighter aircraft.
25:05The deal is estimated to be worth over Rs. 63,000 crores.
25:08As per sources, the Indian Navy will receive 22 single-seater jets along with four twin-seater variants
25:15and a comprehensive package for fleet maintenance, logistical support,
25:19personnel training and indigenous manufacturing components under offset obligations.