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Global News Podcast
World reacts to Trump's sweeping tariffs
00:26:12
Stocks plunge in response to historic shake-up of global trade
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- [00:00]
Valerie Sanderson
This is the global news podcast from the BBC World Service. I'm Valerie Sanderson. And at 13 hours GMT on Thursday 3rd April, we get reaction across the world to President Trump's new tariffs on goods entering the US Leaders of affected countries warn they are ready to hit back. So who are the winners and losers and how are financial markets responding? Also in this podcast, scientists have found strong evidence that a vaccination for shingles can cut the risk of dementia.
- [00:32]
Stephen McDonnell
And this is a vocalization of a tufted capuchin monkey.
- [00:39]
Valerie Sanderson
Good monkeys out yodel humans. Countries around the world have been reacting to the imposition of a raft of sweeping tariffs imposed by President Trump that have huge implications for global trade. US Allies and rivals alike have been hit with a minimum of 10%, with many countries receiving far higher rates. The world's second largest economy, China, was targeted with a 34% tariff. That's on top of the 20% which Mr. Trump had already imposed. The president says China was already charging the US 67%, a figure which he said took account of currency manipulation and trade barriers. China said it firmly opposed the latest move and promised to retaliate. Here's our correspondent in Beijing, Stephen McDonnell.
- [01:31]
Stephen McDonnell
We've had a tough response from the government in Beijing. This from the Commerce Ministry. This is a typical act of unilateral bullying. China's government has called for these measures to be overturned straight away, said that they're in breach of international trade rules and threatened their own countermeasures. And the Chinese government has been ridiculing the notion that these are reciprocal tariffs on the Trump administration's part. So, tough talk. Beijing might be hoping for some sort of a deal to be cut. There's a lot of room for Beijing to place more tariffs on U.S. goods. And what's going to be interesting, though, is how trade patterns potentially change. I mean, are we going to see more trade, say, between the huge block of Europe and China and then other smaller countries, you know, Cambodia, Vietnam and the like. Trading while is politically at least it's been a great gift for Xi Jinping because he's been able to say, well, look, here we are, we're the champions of free trade.
- [02:36]
Valerie Sanderson
Other US Trading partners in Asia have also been badly hit, including Cambodia and Vietnam. Our Asia Pacific regional editor, Mickey Bristow, gave me his assessment.
- [02:45]
Mickey Bristow
The world still really digesting the effects of President Trump's Travis. But one notable feature is, as you've just said there, that a lot of poorer countries, particularly in Southeast Asia and South Asia, have been hit. Just to give you an example example, Myanmar has got 44% tariff and that country's just coping with the aftermath of an earthquake. There's a civil war there. Laos also hit by a 48% tariff. A very, very poor country. Malnutrition still rife there. The per capita income each year is under $2,000. And just to give you a comparison, in the United States, it's $90,000 a per capita annual income. So I think what President Trump targeting Chinese investment in these countries, previous tariffs in President Trump's first term targeted China directly. These are now targeting Chinese companies which have moved abroad. So it will affect those factors, but also the people who are working in those factories and depend on the money that they earn there for their well being.
- [03:54]
Valerie Sanderson
And Mickey, even those staunch allies of the US they haven't been spared this, have they?
- [04:00]
Mickey Bristow
No. Some East Asian countries, Japan, South Korea, Taiwan, nominal allies of the United States, these countries produce higher valued manufactured goods such as cars, semiconductors, electronics, that kind of things. They've been targeted. And the worry here is that politics and economics somehow gets intertwined in that. You know, for example, how would the United States in the future deal with South Korea and Japan over say, North Korea's nuclear weapons if at the same time it's attacking those countries on the economic front? So it kind of undermines the political alliance with these countries by imposing tariffs on them.
- [04:40]
Valerie Sanderson
And what about Australia?
- [04:42]
Mickey Bristow
And Australia, a bizarre aspect of these tariffs have been a couple of Australian islands which have been targeted by the tariffs have really nothing to do with world trade. We've got the Norfolk islands, they've got 29% tariff placed on them. They've got no known exports to the United States. Also islands called the Heard MacDonald Islands, no human inhabitants at all. It's inhabited by seals and penguins. They've also got a tariff, so it's unclear why they've been imposed.
- [05:15]
Valerie Sanderson
Mickey Bristow the European Union faces levies of 20%. The European Commission president, Ursula von der Leyen described the tariffs as a major blow to the global economy and warned the EU is ready to respond if negotiations fail. Germany is Europe's largest economy. Here's its finance minister, Joerg Kukis.
- [05:35]
Stephen McDonnell
The IFO Institute, which is one of our most respected economic research institutes, simulated if there was a flat 20% tariff for the EU, it would reduce our exports to the US by about 15%. Given that we are exporting 160 billion to the United States, that is a very impactful number. But of course there will be a Reaction by the European Union on Monday. There is the discussion of the trade ministers. Germany's government. Government has always had an approach saying a, we don't want to lose our calm and stay in a negotiating mode, so definitely don't overreact. But we do need a strong reaction. I mean, it would be naive to think that if we just sit there and let this happen, things will get better.
- [06:19]
Valerie Sanderson
So will the European Union hit back at the United States with tariffs of its own? Our correspondent Rupert Wingfield Hayes is in Berlin.
- [06:27]
Stephen McDonnell
Number one priority is to presumably pick up the phone and talk to President Trump and say, look, what do you want? And I've seen suggestions that Europe actually can offer quite a lot in terms of importing more things from America. In particular, things like energy. Europe is energy short because of the war in Ukraine and that it could import more liquefied natural gas from the United States and other raw materials, agricultural products as well. If that is a no go. If the Trump administration says we're not interested in negotiations, then there are a package of tariff countermeasures being assembled. And clearly it has to get the agreement of all the EU member states to do this. But it will start with steel, but it will then spread to other American products as well.
- [07:11]
Valerie Sanderson
And how worried do you think different countries are about the businesses that they have?
- [07:17]
Stephen McDonnell
Very worried. German business leaders in particular are extremely concerned about the impact this is going to have. America is its biggest export market now, and particularly for things like pharmaceuticals, chemicals and cars. America is number one.
- [07:33]
Valerie Sanderson
Rupert WINGFIELD Hayes, the U.S. has also imposed high tariffs on a number of countries in Africa, including South Africa, the continent's largest economy, which was hit by a tariff of 30%. So how is the government reacting there? I spoke to our correspondent Maenie Jones in Johannesburg.
- [07:51]
Maenie Jones
Well, I think the government here is concerned. They released a statement saying that they've taken note of the tariffs. They've called them unilaterally imposed and punitive tariffs. They say that they are barrier to trade and what they describe as shared prosperity. And they've added that they plan to negotiate a new trade agreement with the US in order to secure long term certainty. But this is coming at a terrible time for South Africa. Its diplomatic relations with the US have suffered greatly over the last couple of months. The South African ambassador to the US Was expelled from Washington last month and is now back here. The US Currently has no ambassador in South Africa, although it's just appointed one. So it just highlights at the moment just how difficult the relationship between both countries is.
- [08:38]
Valerie Sanderson
And what about the effect mainly on the wider African continent?
- [08:42]
Maenie Jones
Yes. South Africa isn't the only country that's been affected. As a matter of fact, the small southern nation of Lesotho, which is landlocked within South Africa, got even higher tariff hike of 50%. It mainly exports diamonds and textiles, clothing to the US and both countries fell under this law ago. It's an American law that was passed in 2000 that allowed duty free imports from about African countries into the U.S. it's not clear what's going to happen to that now that law is in action. It's meant to be operational. Do these tariffs now supersede it? One economist I spoke to said she didn't think so, but there's certainly a lot of uncertainty there for many African countries that were exporting goods to the US benefiting from duty free exports and now wonder if that's still the case.
- [09:29]
Valerie Sanderson
And the impact, I mean, it must be going to be huge.
- [09:33]
Maenie Jones
Absolutely. Agoa has been credited this African Growth and Opportunities act, this law in the US was credited for creating thousands of jobs, particularly in manufacturing in Africa. And that was the whole point of passing it under Bill Clinton in the 2000s was to boost African economies by getting them to export duty free. So now if it's going to be repelled or if these tariffs are going to take over, there are fears that thousands of jobs could be lost in some of the poorest countries in the world.
- [10:00]
Valerie Sanderson
Miami Jones the tariffs are designed to protect U.S. manufacturers. In Florida, Nick Bernal imports fruit from 19 different countries and with each shipment sees tariffs and import duties leave his company's account. He's braced for those levies to rise dramatically.
- [10:17]
Stephen McDonnell
There has been some planning. We're not completely blindsided. 90% of our business is imported coming from latam countries. So most of the countries that we operate are going to be a 10% tariff, which is in annoyance. And we're probably going to have to eat most of that. Food is already retailing at a ridiculously high price. And big box stores such as Costco, Walmart, I don't know how much more they can pass on these tariffs to the consumer. So in the end we're going to probably have to eat most of that. It's going to come off our bottom line. And some countries we do business in, South Africa, they just got hit with a 30% tariff.
- [10:48]
Valerie Sanderson
But the Trump administration is defending its policies with the president banking on tariffs restoring America's manufacturing prowess and the balance of trade as markets tumble. Donald Trump says the US will emerg Stronger. His treasury secretary, Scott Bersent, warned any retaliation would result in further escalation.
- [11:07]
Stephen McDonnell
My, my advice to every country right now is do not retaliate. Sit back, take it in, let's see how it goes. Because if you retaliate, there will be escalation. If you don't retaliate, this is the high water Mark.
- [11:22]
Valerie Sanderson
Our North America correspondent, Peter Bose has the latest from Washington.
- [11:26]
Stephen McDonnell
Donald Trump's loyal supporters are standing behind him on this. There's been some dissent amongst Republicans, a small number of Republicans in the Senate, as these tariffs apply to Canada. But the real strong reaction has come from consumers, from retailers and also manufacturers, especially those companies that rely on buying parts from overseas that are essential to their products that will now be subject to tariffs. They have to try to figure out the extra costs, whether they can pass them on to their customers or indeed in some cases, whether they can stay in business. But as far as Donald Trump is concerned, this no pain, no gain strategy is now in place. And I think the real question is to what extent for his administration is this just the starting point, the starting point of a negotiation of potential individual deals with countries around the world? Given Donald Trump's style, that's extremely likely.
- [12:21]
Valerie Sanderson
Peter Bose, still to come on the global news podcast.
- [12:27]
Stephen McDonnell
Well, it's been four years of hell really, if you want to know the truth. I mean, really can't do anything.
- [12:36]
Valerie Sanderson
Skip is in a lot of pain. It's medically controlled pretty well, but he has onset pain that hits him like a brick wall. We meet Skip, who explains why he's going ahead with the decision to have an assisted death. Nearly a week after the devastating earthquake in Myanmar, the military government says the number of people known to have died has risen above 3,000. But with many of the devastated areas still inaccessible, aid agencies believe the final number will be much higher. Tyto Mitra is the United Nations Development Program representative in Myanmar and he described the situation on the ground.
- [13:20]
Stephen McDonnell
We've already got reports of outbreaks of cholera, hepatitis, typhoid. In fact, some of our aid workers have already contracted hepatitis. Hospitals are simply overwhelmed. As you know, there was a civil disobedience movement where a lot of health staff had left, and they're just simply not equipped to deal with this number of injuries.
- [13:41]
Valerie Sanderson
On Wednesday, Myanmar's military announced a three week ceasefire in its fight with various rebel groups after being criticized for continuing the civil war despite its impact on relief efforts. Our correspondent Nick Marsh, who's following developments from Bangkok, gave us this update.
- [13:57]
Stephen McDonnell
They're saying that they're going to stop hostilities. They're going to stop their campaigns from the air and on the ground for three weeks to try and help that relief effort after that devastating earthquake. But it's funny, I mean, this time yesterday, the military was insisting that its campaigns against rebel groups in Myanmar was going to go ahead as normal, even though the rebel groups themselves were saying, look, we're going to lay down our arms because people in our area, areas desperately need help. The military actually rejected that yesterday. They were bombing villages 50 miles from the epicenter. Don't forget, within 24 hours of the quake hitting. Now they're saying, actually, yes, let's have a three week ceasefire. We don't know what's changed their minds, but there was an incident yesterday in Shan State where some troops fired on some Chinese aid workers from the Chinese Red Cross. And you know, the government in Beijing will not have been happy about that, that's for sure. They have some quite good leverage over the Burmese military being one of their only powerful allies in the world. So yes, we have a ceasefire now. It's good. It's better than nothing. There is still this fear that the junta controls aid. We've been told by the UN about reports of aid being stopped at checkpoints entering rebel areas and that could be up to 75% of the country. So the situation remains dire. But the military leader is actually arriving today in Bangkok as scheduled for a regional conference which will not please people in Myanmar today.
- [15:22]
Valerie Sanderson
Nick Marsh, Hungary's government has announced its quitting the International Criminal Court. The ICC has the authority to prosecute those accused of genocide and crimes against humanity. It comes on the day the Israeli Prime Minister, Benjamin Netanyahu, himself wanted by the court, arrived in Budapest for meetings with his Hungarian counterpart, Viktor Orban. At a joint news conference, Mr. Orban explained why he was taking his country out.
- [15:47]
Stephen McDonnell
We are convinced that this has become a political court in the past years. This is not court of the rule of law. It's a political course. It is not unbiased. And this was clearly shown, mostly shown by the decisions related to Israel. And I do believe that an international court, mostly by political intentions, cannot have Hungary participating in Israel any country that deems democracy as important.
- [16:18]
Valerie Sanderson
Our Central Europe correspondent, Nick Thorp is in Budapest and he's been telling me more about Hungary's reasons for leaving the ICC immediately.
- [16:28]
Stephen McDonnell
When the warrant was issued for Mr. Netanyahu's arrest last November, the Hungarian Prime Minister, Viktor Orban called that ruling a brazen, cynical and completely unacceptable one. Hungary, interestingly it signed the ICC, entered the ICC under a previous Viktor Orban prime ministership in 1999, ratified in, in 2001. But basically Mr. Orban does not like international courts in general. Hungary under his government has been found guilty of breaching rules by the International Court of European Union in the past by the European Court of Human Rights. And so it's sort of symbolic rather on a day of Mr. Netanyahu setting foot on European soil for the first time since that warrant was issued that Hungary should announce its withdrawing from the ICC on the very same day.
- [17:19]
Valerie Sanderson
And tell us about the relationship between Viktor Orban and Benjamin Netanyahu.
- [17:24]
Stephen McDonnell
This goes back a long time, back to 2005 when Mr. Orban spent a four day visit in Jerusalem. Clearly the two leaders got on very well. Mr. Netanyahu even shared one of his political or a team of political consultants that later helped Mr. Orban return to power in 2010. So it's very close. Also Hungary, of course, with a large existing Jewish population and large numbers of Hungarian Jews murdered during the Holocaust. So a very sensitive relationship with Israel always. But Mr. Orban has always used this friendship with Mr. Netanyahu to prove or to hit back against critics who accuse him and his government sometimes of anti Semitism. So it's useful really for both countries, especially now for Mr. Netanyahu coming here and being able to effectively thumb his nose at the icc. Although that said, Hungary is not alone in this. It's just sort of out ahead of other EU countries that have emphasized their friendship with Israel and with the current Israeli government.
- [18:30]
Valerie Sanderson
Nick Thorpe in Hungary, it is one of the most controversial issues facing society. Should assisted dying be legalized? Lawmakers here in the UK are currently considering new legislation based in part on one which has been operating in California since 2016. There, to qualify, an adult must be terminally ill and expected to die within six months. And to get approval to go ahead with assisted dying from two doctors and patients have to self administer the lethal dose. Our medical editor Fergus Walsh reports from California. Hey, baby, you want to move your head up?
- [19:08]
Stephen McDonnell
Okay. Norma Jean Riley knows she has very limited time left with her husband Skip. He now has a hospital bed in his sitting room. You want to get up a little bit higher. Age 79, he's dying of cancer which has spread through his body. Well, it's been four years of hell really, if you want to know the truth. I mean, really can't do anything. Norma Jean says he's suffering.
- [19:38]
Valerie Sanderson
Skip is in a lot of pain. It's medically controlled Pretty well. But he has onset pain that hits him like a brick wall. It's almost more than he can deal with at times.
- [19:51]
Stephen McDonnell
Skip lost both legs after stepping on a landmine in the Vietnam War, but has led an active life. He restored and rebuilt cars until he became too ill. Now he wants an assisted death in the home where he's lived for almost 50 years. I just want to go out as peaceful as I possibly can with my family around me. And I don't feel like I can have that in a hospital with people in and out, in and out. Here's the prescription, Dr. Hartman. I got it yesterday. In California, families are allowed to store the lethal medication at home and don't need to have a doctor present when they die. Neither would be permitted under the Westminster bill proposed by Kim Leadbeater, MP. This is the mixture itself. Let's not drop it. Dr. Bob Hartman holds the bottle with the lethal powder and explains to Norma Jean what will happen on the day Skip chooses to die. I will be mixing this and then take it into Skip for him to ingest it. It's a mixture of five different medications. They're all very powerful medications. The medication slows his heart down, and he very peacefully passes away. But some doctors here believe assisted dying is both immoral and dangerous. Like Vincent Nguyen, a palliative care specialist. Yeah. I worry that the physicians are no longer seen as a healer as we are, but rather participating in the death of a person by killing them. And we come from a healer to a killer. The way that we care for the most vulnerable in our society is the measure of its humanity. So instead of ending people's lives, let's put programs together to care for people, let them know that they're loved, they're wanted, and they're worthy. Keep going. Thanks, dear. This is Ingrid Tisha, a disability campaigner. She has muscular dystrophy and chronic respiratory failure and says assisted dying makes her feel unsafe.
- [22:05]
Valerie Sanderson
The message that it sends to people with disabilities in California is that you deserve suicide assistance rather than suicide prevention. When you voice a desire to end your life, what does that say about who we are as a culture?
- [22:25]
Stephen McDonnell
Skip Riley died a week after our visit, his wife, Norma Jean, and his sons by his side. The family say he had the peaceful death he wanted.
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Valerie Sanderson
Fergus Walsh. In the United States, a new study has found the strongest evidence yet that a vaccination for shingles can cut the risk of dementia. They found that those who received a jab called Zostavax were 20% less likely to develop dementia. Within seven years, more than 55 million people globally have dementia and a number of clinical trials are underway to try to find a breakthrough medical therapy. Dr. Pascal Gelsetzer from Stanford University is a senior author of the new study.
- [23:07]
Stephen McDonnell
Roughly one in five new dementia diagnoses over a seven year follow up period are averted through shingles vaccination, which is to us a very exciting finding. It's a very robust finding and it's most importantly a finding that we keep seeing in data set after data set from different populations and different countries that rolled out shingles vaccination in similar ways.
- [23:33]
Valerie Sanderson
The researchers tracked the health records of nearly 300,000 older adults in Wales. As Rory Gannimore reports, shingles is an.
- [23:41]
Stephen McDonnell
Illness that causes a painful rash. It doesn't typically have anything to do with our brains. So this study's findings may appear surprising. The researchers took advantage of a natural experiment more than a decade ago. Shingles vaccinations began in Wales. But anyone over 80 missed out. That decision neatly divided the population. When scientists analyzed their health records, they found those who'd received a jab called Zostavax were 20% less likely to develop dementia within seven years. It's still unclear what's causing this. Some researchers believe the vaccine may reduce inflammation or somehow help the immune system to protect the brain.
- [24:19]
Valerie Sanderson
Rory Gallimore. And finally, who doesn't love a good yodel? That was yodeling teacher Lyn Nash. And the distinctive singing style is usually associated with Europe and the Swiss Alps. But scientists have found that South American monkeys might be the best in the world at it. They recorded and studied the calls of the monkeys in a wildlife sanctuary in Bolivia and found their calls in places are similar to Alpine yoodling. Let's have a listen.
- [24:53]
Stephen McDonnell
This is a vocalization of a tufted capuchin monkey. And this is the same sound with time slowed down by a factor of four.
- [25:08]
Valerie Sanderson
Well, I'm not too sure that sounds much like yodeling, but the researchers say that while human yodelers leap between notes spanning an octave or less, the primates can jump more than three musical octaves at once. And they're able to do this because they have a vocal membrane that humans don't. The scientists behind the study believe the primates, including black and gold howler monkeys, black capped squirrel monkeys, and Peruvian spider monkeys, have developed this skill to be able to communicate better and to ensure they get attention from other monkeys. And that's it from us for now. But there will be a new edition of the Global news podcast later. If you want to comment on this podcast or the topics covered in it, send us an email. The address is globalpodcastbc.co.uk you can also find us on X@ BBC World Service. Use the hashtag @global Newspod. This edition was mixed by Chris Lovelock. The producer was Stephanie Zacharison. The editor, as ever, is Karen Martin. I'm Valerie Sanderson. Till next time. Bye.