China's Counter-Tariffs; CEOs Respond to Market Uncertainty; Trump's Deportations

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What are China's counter-tariffs against U.S. goods?

Ayesha Roscoe 0:02
China's response to President Trump's massive tax on their exports, a tariff of 125% on U.S. goods.
Scott Simon 0:11
China's countermeasures go into effect today. I'm Scott Simon.
Ayesha Roscoe 0:14
I'm Ayesha Roscoe, and this is Up First from NPR News.
Scott Simon 0:21
A raging terror war between the U.S. and a key trading partner, China, is escalating.
Ayesha Roscoe 0:26
We'll give you the view from China.
Scott Simon 0:29
Also, if you're feeling a little anxious about the economy, you've got something in common with some of America's most powerful CEOs. We'll tell you what's making them nervous.
Ayesha Roscoe 0:38
Plus, a look at the Trump administration's efforts to deport foreign nationals who are in the U.S. legally.
Scott Simon 0:44
So please stay with us. We have the news you need to start your weekend.
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How did the U.S.-China trade war escalate to triple-digit tariffs?

Sponsor Voice 2:09
The world's two largest economies are in a pitched trade battle.
Ayesha Roscoe 2:12
The U.S. and China have ratcheted up their tariffs on each other's exports into dizzying triple digits.
Scott Simon 2:19
NPR's John Rewitz joins us from Beijing. John, thanks for being with us. Happy to be here. How did things get to this point?
John Ruich 2:27
Well, it started with those reciprocal tariffs on Liberation Day. Trump imposed tariffs on countries from around the world, of course, and China was hit with a 34% levy. Beijing was less than pleased about it. So two days later, China matched that with a tit-for-tat 34% tariff on U.S. imports. Trump didn't like that. He added 50% on top of it. China responded with 50%. Trump added more. China responded. So by the end of the week, the base tariff on Chinese imports into the United States was 145 percent. And U.S. products entering China now get hit with a 125 percent tariff. It was a dizzying upward spiral. And these are crippling numbers.
Scott Simon 3:10
And a lot of people are certainly wondering any end in sight.
John Ruich 3:13
Yeah, there's no end in sight to the acrimony at the moment. But Beijing did something kind of interesting on Friday when they increased tariffs that last time to 125 percent. They said they were done playing the tit for tat game. So with tariffs at that rate, they said U.S. products are no longer competitive in China. And if Trump continues to raise tariffs on Chinese goods, it would be a, quote, joke. And China just wouldn't match them. Now, China is not going to roll over. Officials in Beijing said they will continue to protect their rights and interests. So perhaps it's a dual signal, you know, restraint on one hand on the tariffs, but also kind of a don't mess with us signal. Experts do say there does come a point, you know, when raising tariffs further just doesn't do anything. And these tariffs are already sky high. Victor Gao is with the Beijing based think tank, the Center for China and Globalization.
Victor Gao 4:01
In my best judgment, it means China-U.S. trade will grind to a complete halt, meaning there will be no more trading between China and the United States.

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