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Ben Brown

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Global News Podcast

Trump's tariffs explained

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And that, in a way, John Simpson, our world affairs editor, is the sort of the other side of the coin from China, isn't it? Because they are saying they'll fight to the end. For them, is this a sort of sense of national pride that they're not going to just roll over to Donald Trump? They are going to fight these terrorists.

Global News Podcast

Trump's tariffs explained

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I've heard it said that Donald Trump has got the watch, but China's got the time. In other words, it's big enough and its political structure, essentially a dictatorship, means it doesn't have to worry. President Xi doesn't have to worry about midterm elections or anything like that. He can wait this out. He can be patient.

Global News Podcast

Trump's tariffs explained

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But I suppose, Nick, well, I mean, a lot of the goods that China currently sells to the United States, it could dump. On other countries like the UK, potentially cheap imports that they could sell around the world and in Asia as well. It's got alternative markets. It's got its own domestic market, actually, hasn't it, which is massive.

Global News Podcast

Trump's tariffs explained

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It's all mind games. Thank you very much, Nick Watt and John Simpson. Pleasure to talk to both of you.

Global News Podcast

Trump's tariffs explained

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And me, Ben Brown in London.

Global News Podcast

Trump's tariffs explained

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Well, as far as the European Union is concerned, it has now put on hold its planned retaliatory tariffs against the United States in return for the olive branch that was offered by Donald Trump. The EU has now held out an olive branch of its own. Well, when it came, President Trump's spectacular U-turn on tariffs did come as a surprise. But what forced him into that apparent climb down?

Global News Podcast

Trump's tariffs explained

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Many financial experts believe it was the turmoil on the all-important bond market, which which was dramatically increasing America's long-term borrowing costs on its national debt of more than $30 trillion. Well, let's talk to Darshini David then, who is our Deputy Economic Senator with me in the studio. Well, two questions really, I suppose, Darshini. What did force that retreat by Donald Trump?

Global News Podcast

Trump's tariffs explained

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And what are we left with? Is this essentially now a bilateral trade war between America and China?

Global News Podcast

Trump's tariffs explained

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And on China, I mean, these tariffs were 125%. The White House say, actually, the total, when you take into consideration earlier tariffs of 20%, it all adds up to 145%. I mean, it's whopping, it's eye-watering, whatever numbers you look at. And we are in this trade war now between the United States and China, the two biggest global economic powers.

Global News Podcast

Trump's tariffs explained

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What are the consequences of that for the rest of the world?

Global News Podcast

Trump's tariffs explained

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Hello and welcome to Trump's Tariffs Explained with me, Ben Brown, here in London.

Global News Podcast

Trump's tariffs explained

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All right, Darshini, for the moment, thank you very much indeed. Darshini David there, our Deputy Economics Editor.

Global News Podcast

Trump's tariffs explained

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Yeah, why, for example, did he impose them with such flourish last week only to then put them on pause just a few hours after they actually came into effect? Was it a retreat forced on President Trump by the turmoil that we've seen, especially in the crucial bond markets?

Global News Podcast

Trump's tariffs explained

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Well, Darshini, David, our deputy economics editor, is still with me. We were hearing Donald Trump talking to his cabinet about there will be a transition cost to all of this, his tariffs policies. There will be transition problems. Well, we've certainly seen some of that. But on the upside, the White House is saying they've got all these countries queuing up

Global News Podcast

Trump's tariffs explained

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To do business with America, to do trade deals.

Global News Podcast

Trump's tariffs explained

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All right, Darshini, once again, thank you very much indeed.

Global News Podcast

Trump's tariffs explained

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Or was it his strategy all along, as the White House has been suggesting, successfully driving dozens of countries to the negotiating table?

Global News Podcast

Trump's tariffs explained

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Well, we've been listening in to the session of the U.S. Cabinet, actually. And let's just hear Donald Trump. He's there talking to his cabinet.

Global News Podcast

Trump's tariffs explained

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Donald Trump talking to his cabinet. And at the beginning of that session of the cabinet, by the way, he talked about his tariff policies. And he said, quote, there will be a transition cost and transition problems. But in the end, it is going to be a beautiful thing.

Global News Podcast

Trump's tariffs explained

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Well, here in the UK, the Prime Minister, Sir Keir Starmer, has said that trade talks with the United States are at an advanced stage and making progress. But he also said that any trade deal with the United States would not be the end of the challenge. Let's talk about that with Nick Watt, who's our political editor for BBC Newsnight, and also our world affairs editor, John Simpson's with us.

Global News Podcast

Trump's tariffs explained

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Nick, first of all, tell us more about what Keir Starmer has been saying and these trade talks, because we know that Donald Trump is saying these countries are all queuing up, you know, to get access to him, to come to the White House, to do deals because of his tariff policies. But I suppose the UK was looking for that for quite a while.