Dow drops sharply amid tariff feud

The Dow nosedived Monday in response to the escalation of the U.S.-China trade war.
22:18 | 05/13/19

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Transcript for Dow drops sharply amid tariff feud
And. Everybody welcome to the briefing room on this Monday have Devin Dwyer Washington great to have you with us a big day on Wall Street ahead we'll get into. What these swings from the Chinese. Trade war. Mean for your pocketbook coming up also talk about the situation develop in the Persian gulf with Iran and also today. Talk about some big developments on the twentieth when he campaign trail with respect. The climate change to stay tuned for that but leading off right now we're looking at the markets today. There once again getting all of us a scare anybody with a retirement plan for one K you don't wanna look it is down big again today this. As the Chinese just a short time ago announced that they are gonna retaliate. Against president trump. And the United States after he ratcheted up tariffs in this escalating tit for tat now on billions of dollars in goods. Either trade between both countries popular goods. All of us could soon pay higher prices for those goods will get into that right now with two of our guests. And also how it's impacting. Their businesses we're joined now by Michelle Jones. As she's a former in net set the south central Montana agreed to see you Michelle also joined by Tiffany Williams. A luggage shop owner in Lubbock Texas she we'll tell us about how this is all impacting her business but let's start with our with Michelle since so much of this. Fight is over agricultural products Michelle how concerned are you now that the Chinese just today. Have vowed to increase to 25%. These tariffs on so many goods that your exporting overseas. I am concerned to see agriculture games under our hearts parents list and I hadn't seen the bullet is currently running it. We're are subject to bottom Tara sign boat that sort is plus or cut costs that we or not. It is a blanket or Z aren't escalation in these terms. And you raise wheat Barley corn alfalfa and hunt and some cows that had I understand out there in Montana for generations farming. How difficult is this stretch for you right now put this into context for us sending farmers always. Experience ups and downs financially with the seasons the weather. Is this been dramatically different. Yeah. Yeah spends a lot of other economic downturn is certainly. You can't remember anger imagine this. I'm Dennis has started yet incredibly difficult arms because they had no inside and that's and is working trawl. And these terrorists certainly I did you other issues out. Excess supply and hurting our and export markets in decreasing our expert man has definitely. Exacerbate it. A lot of the issues and your culture needs worker's arm. Very very tough conditions. And Tiffany Williams. Small business honor and Texas. You've also talked about some very difficult financial conditions for your business talk to us about how the tariffs that impacted you. Folklore its luggage all luggage all crap tax all briefcases and most travel accessories are included on the current terror lists so we're already. Com you know 85% of what's in our store currently he is on the terrorist list and I'm so we it has affected Essex specially for our current luggage and then things that we you know really enjoy selling day in day out and also affecting. Field Imus discretionary income the consumer has to spend so. Mead said he is seen you know drop in our business and this year and I think a lot of it has to do with the tears. And that is just to break it down for people just a little bit more simple. It is more expensive for you now to import the products from China which in turn then. Takes a big gouge out of your your profit margin right when you're turning that around and selling it to Americans in Texas. Correct well it's probably technically Aaron manufacturers. Need curse our luggage from manufacturers who were directly importing the goods so which I'm weird to seen more on the on pricing sign Reno because we need to match that pricey and so we are seeing more on the price increase somewhat we sell even. I'm vs. Seen an app that level because we don't directly important ourselves. And the president today ladies has been talking about these tariffs in fact. A speaking specifically about farmers a short time ago in the Oval Office let's take a listen about what he had it's. We love our farmers we take care of our farmers farmers have been incredible no country can get in the way of our farmers. And they've benefited testing job so our farmers are going to be very well taken care. Michelle back to you on this the president has allocated twelve billion dollars in aid to farmers have you. Felt any of that help when you make of of his comments. I am a mother certainly. It was out last year this year. Her armor is an arts and again has. The market says. Yeah we have seen and it'll be very difficult trainee lots it packaged this year I see you. You. Make us whole again that amount islands export market that we gloss and so let's not been one of the main problems is our. They're bringing export demand and area donor X murmured it's. Donald deadly ending and will have to take some time. Here's your heart. In Tiffany. Two to you on this. As this continues and there really isn't an end in sight the negotiations as I'm sure you've been following kind of go back and forth. And advocate tariffs keep going up I mean do you. Do you have kind of like a drop dead point is you're looking at this words just gonna get too tough warrior it's simply unbearable. Even more than it is right now. I think this is info concerning as it seems like we were nearing a resolution at least you know an immediate I mean things that we heard. Coming into this week more confident that we thought we were moving in a positive direction so it's definitely make for a lot of uncertainty. On what the rest of the Euro looks like and how that's going to practice especially within going up to 25%. I'm it's yet to know how our manufacturers are gonna respond to that about the pricing going to look like but I would assume. In the prices will go on and on some of our goods and we don't know how to consumers can't respond to that. And do you hold Tiffany it is there a political cost here in your view in the communities. And industry groups that you participate in Texas is obviously very red state. Are people sort of taking this out and the administration. In your circles or is there still a good bit of patience. In an impatient so we all why it's on the end results events to be on trade policies with China that are enforceable and on help with their issues that we've been having an out so Aaron we certainly support the administration's after a speech to be tough on China and to get those things done. But what's difficult for us as we knew placed those terrorists on American consumers we would love to see. Oh wait a resident you know to bring a resolution to this that didn't include terrorists and didn't directly affect the consumer and affects small businesses. Yeah and Michelle the Jones. The former out Montana or what is your message to. To the administration is they continue these negotiations with the Chinese what he want them to know from you. Similar as if any I'm just knows. You know we're supported on ensuring that. Trade partner and then weeks and. Normalize our relations are going forward and that leads me autumn many of these increase your barriers are terrace that our. Markets it is art. Some are embarked CN. And we certainly encourage that is durable resolution and see you rule these aren't your sheets. And we will see how quickly they resolve themselves were innocent talks under way community of the G-20. Between president trump the Chinese president she in the next couple of weeks who. Watch that recourse in this should Michelle Jones former in Montana appreciate your time very much and Tiffany Williams. Small business owner Lubbock Texas think you so much for your time for coming on appreciate you both. I shifting gears now over to the Middle East in those escalating tensions with Iran a situation that's also impacting. The markets today and those oil prices the president weighing in on the threat from Iran a short time ago ticklish. We'll see what happens with a run and they do anything beyond very bad mistake they do anything I'm hearing Abu. Stories about Iran they do anything that will suffer greatly we'll see what happens with the rough. Art they'll suffer greatly since a threat we've heard before Terry Moran our senior national correspondent is here Terry. Armed so how close art certain smells like we're getting pretty close to some sort of a conflict and dust doesn't and it's kind of step by step. This escalating tension on both sides to what happened here was over the weekend at some point to Saudi oil tankers were apparently. Damage significant dams societies say they say it's sabotage also Norwegian ship was damaged. The saudis haven't offered any evidence of the damage or evidence of how it might have been caused the Norwegian ship did show some damage under the water line. Neither ship sank there's no oil spill or anything like that but this comes at the exact moment. Of these rising tensions you might remember last week the United States under president trumps orders. Sent an aircraft carrier group and beaten be B twelve B two bombers over to the Middle East. And that it was in response. To Iran's escalating tensions its proxy war through Hezbollah against Israel what you see is the chess game. Getting very tense in the Middle East. Donald Trump came to power. And told his advisors specifically no more wars. He is surrounded himself however with people. Who are very hawkish especially when it comes to Iran a position that he's that he shares. So while that wars I was not in the offing it's one of those situations which is it just a tinderbox could blow. And any minute this just how things are heating up. They also do talk talks with GM much harder line against Iran as well on the do have a history Terry Wright and you filed this stuff from your years in the region. Of Iran sort of and we don't know from Ron was behind the ship attacks yet we should say but they do we history of the sort of one off. In a little little hits that if he'd be there been funded by rebel groups or other kind of supporters of Iran you know no fingerprints right. Exactly that did this comes through the Strait of Hormuz that through the Persian gulf for 40% of the world's oil comes through on one side is Iran backs they're strategic advantage in the world. Thing that Iran is standing against the United States' most powerful country in the world now for decades. That choke point is one of their strategic advantages may know. I'd have been severely warned that if they ever cut it off the united that would mean war but they kind of tiptoe up they've got these proxy groups now we should say not only. Has no blame been assigned to Iran once again there is no actual evidence that there was an act of sabotage year and we have seen how in other wars in the Middle East. War is happened through false information. And sometimes misinformation. A lot of investigation to be done on that specific episode but bottom line though any sort of tension or disruption in the golf and in that straight. Has an effect on oil price saw and we're looking at an oil mark which is already. Very tight Venezuela's out of it Iranian oil now out of at the United States saying we will allow no more waivers of its sanctions and so. Right now oil prices are our hot upward pressure on them if in fact there was some kind of confrontation between the United States and Iran you could see. When the only person in the world would be really happy about that aside from the sheiks in in the Middle East is Vladimir Putin who makes a lot of that produces larger investment. A lot of oil termer and think some what you see on world news tonight so what does all of this disruption in the gulf. I mean for you what does it mean for your bottom line and we Britain would like to bring in now an expert bola a C Koon B she's a certified financial education instructor also the founder of clever. Girl finance. For some tips and what to make sense of this market. Shake up today on all of this foreign news bowl it's great to see you. I so what do you tell people really unnerved. By the market the past a week or so and what they're seeing today over a monstrous. You know all these issues going on the China trade alliance the grand isle and Sarah they have a direct impact on your your carpet because what's happening is backed while. The cost of goods and pinnacle potentially will be issues your income is not going indirect part. Isn't she what's happening right so that means when you're purchasing meat imported goods into the gas on the purchase gas. To potentially costing you more money. And it's important that he arm. Good understanding of their financial tourists they can start to navigate these issues in your own personal economy. And in wingtip you know tariffs we keep hearing or will hurt people I think it's. Difficult. For a lot of us to actually draw that line. From these sort of you know these these theoretical tariffs out there on Chinese goods and and what we see when we go to Kmart or target. How soon do you think the prices we'll actually start to go up on some of these goods better be brought in from China. And in good depends on. How many accident illegal look into the air and seeing inch. And also how soon this inventory currently existing meet your financial. And so you begin to see it very quickly it are at this article in the store is where it active gas. And how can all of us then. Minimize the damage in protect ourselves from all these tariffs. And it's need it clear picture of their finances and the greening our economy. Like I said your income. Working away beat the cost of you could be going that earned the new one is. Eagles aren't the budget and it is weak giving yourself. And many meeting ending. And looking at what areas any act. I'm absolutely and because you want to be able to stretch your dollar in this in this situation and I'm handing you want to keep in mind is that when. Economies are to get I want to all rates essentially. He. Seeding in Clayton if you how. Zachary. If you tap high interest at high interest credit that is a great tying to focus on paying that down. So that you can start to take any time that there are payments once the lunch and under other an act parodies like eating eating when investing. And it's important that UT that long term debt to denying a lot of people are panicky because what they're seeing a line in the market rates. However be either short term situation that are happening in. Potentially investing long term. Playing thirty years to retirement and this is probably just glitch and eat all addicts don't go out tax now are selling everything that US and because it looks like I'm in the economy right now. And then. I can't say that you want you at least increased income rates could beach Ingrid better paying job getting apart and dot. One and being house that you don't need a listing them on an evening to get additional inch. And then he NPR news those funds that came down at all emergency seedings. Smart advice all around he rumor not in a scary time on the markets for sure but also good reminder boat. That some of that pain in our retirement investment bank accounts is not actually felt. Until we sell so just hang on fasten the seat belt. And waited out appreciate that advice and all that good stuff for a ballistic can be founder of clever girl finance great to see a bullet thank you. Start turning out of the race up for 20/20 and former vice president Joseph Biden on the trail today making his first trip as a candidate. A to the first in the nation primary state of New Hampshire he's talking about climate change teasing. A big plan that is on the way a short time ago I caught up with or kidney reporter Kristin Otto who's up there with Joseph Barton. Hey Devin silk button just made his first appearance New Hampshire as a presidential candidate he promised to talk about his climate change. Proposal warranty till later this month in a speech but he did discuss a few things he said he. He's going to lay out his holes planned later this month calling an environmental revolution he says he's on the forefront leaders and climate change talking about it since 1987 but he strangled criticism because while he may have been a more fronts and thanks maybe 71 of the last candidates actually it's been talking about it and releasing a plan. Many other candidates have released their climate change plans he wants to kind of bring it back to Obama era. I'm talking about the Paris climate accord and even once secede solar panels or. Electric car charters along every highway in America. Right soon the former vice president thanks to Chris there the former us president T seen a big plan. Didn't throw back to the Obama days certainly not in embraces the green new deal or Stephanie abs are environmental reporter she joins us to dig into this now also charged from New York by Avery harper she's another one of our new campaign reporters Aybar agreed to seal let's start with you Avery you are. Are covering the campaign coverage Joseph Biden some of the other Democrats. How is the former vice president the front runners climate change plan being received. Well in a field of democratic U. And it is that is as wide as the democratic field all these candidates are looking for ways to. Differentiate themselves from each other and a recent Reuters report gave some Democrats the opportunity to do to do just fat. The called Biden's. Plan middle of the road and so we saw it immediately some of those candidates come out and say. And criticized that plan we Suggs Bernie Sanders sweet that there is no middle ground when it comes to climate policy. Washington State governor Jay and police said we can simply we cannot simply go back to the pass and this is all because of what Biden's plan might say. We do know that he is expected to release a plan before the end of the month. Hand middle of the road is probably not. A slogan that we'll go over well with a lot of those. Progressive group Stephanie that your covering environmental groups they want the car to the left. On environmental pulse yeah absolutely said they are really seizing on this moment where climate change of such a big part. The presidential debate you know they. They are pushing for similar to the green new deal the most ambitious possible solutions because. Kind of similar to the roadmap Orleans groups these are I'm zero I loved Sierra Club the League of Conservation Voters is on it's been around for along time and you have these kind of up coming and coming up grassroots groups as to specifically at young people like the sun rights movement and. They were tweeting about that Joseph bide Ali I'm just the reds interests and it's not actually on. Who tweeted just. Overnight here that Joseph Biden's middle ground will drown entire communities forever said vast walls of our country a blaze kill millions of species. Terror apart the fabric of our economy my generation doesn't have luxury or privilege of middle ground. Oh yeah every harper that it's not something that. That I know that Joseph Biden will take lightly. He hopefully come out swinging against that criticism only. Definitely this is. Eight an issue that can Biden campaign is going to have to tread very carefully. In order to capturing be progressive part of the party we've seen some of the other candidates like that so words he's come out with a five trillion dollar plan. Proposal to combat climate change he's talking about taxing the rich. In order to invest in technology to get to net zero emissions rights when he fifty Jay is Lee again he wants to reduce carbon emissions by 45%. By 2030. And what to put forth clean energy standards and electricity new vehicles and new buildings in order to get there. This is a field that has embraced they the green new deal many have refuse contributions from fossil fuel companies. And your executives and so Dan climate changes that when going to be an issue that has people are going to be watching Biden. Four. Right away it's the source of funding that some have even called out. People both parties for receiving money from fossil fuel that I'm runs through direct your. Already you know of throwing out money at the League of Conservation Voters announced a two million dollar effort to pressure candidates to talk about climate change released. What they call ambitious climate pay plans that focus on green energy it's interesting that bite and chose the word revolution instead of ambitious. You know people who are less comfortable with this would call them extreme expensive. Even socialism if you're going back to green new deal territory you know. One of the first big flash points in this farmers is going to be interest seemed to see. If they actually pull off a climate change debate is a member of the candidates have been talking about Avery harper it's great to see you on your. Briefing room gave you know you'll be out on the trail great to meet you Stephanie and so it's funny how you hear thank you for that. I think you for watching us on this Monday here in the briefing room we're here every day 3:30 eastern time. Download the ABC news after the latest on all these stories on Devin Dwyer Washington. See you back here tomorrow.

This transcript has been automatically generated and may not be 100% accurate.

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