US Tariffs: Potential global fallout from Trump's trade policies

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Europe

02:23

Trade disputes are spreading around the world. None of the economies get a narrow escape from the impact of tariffs, certainly including the US itself. These trade tensions cause not only worries and tough times to industries, but also hurt consumption. Sean Callebs reports.

All it takes is a quick peek at any port around the world, and you get the idea.

CHARLES SKUBA MARKETING AND BUSINESS DEVELOPMENT EXPERT "We live in a really interconnected and inter-developed world -- certainly in the area of supply chains, global supply chains."

US President Donald Trump is punishing a host of nations - especially China, saying when it comes to trade, the playing field isn't level.

DONALD TRUMP US PRESIDENT "I respect China, and I respect President Xi, but they're killing us, $507 bln in trade deficit last year."

Charles Skuba, with Georgetown University's business school, says the number is closer to 350-billion -- still lopsided, but he believes China wants to work out differences with the U.S. -- and with good reason.

CHARLES SKUBA MARKETING AND BUSINESS DEVELOPMENT EXPERT "In the long run, the big losers of an escalating trade conflict are the consumers -- consumers everywhere."

SEAN CALLEBS WASHINGTON "Let's take the iconic iPhone for example -- Assembled in China - and obviously imported to the United States. But there are all kinds of parts, that make up this phone - and they truly come from all over the world."

The audio chips, come from -- the UK, China, South Korea, Japan, and Singapore. The compass - Japan, the U.S., France, England, China, and South Korea. The iPhone camera - from more than 20 different nations. The glass screen -made up in 24 countries. And, -- the battery -- a whopping 80-different nations.

It's just one example, and the IMF Chief Economist is worried where this feud is headed.

MAURICE OBSTFELD IMF CHIEF ECONOMIST "Whether you call it trade war or not, it would be very worrisome."

CHARLES SKUBA MARKETING AND BUSINESS DEVELOPMENT EXPERT "They say the average automobile manufactured in Michigan crosses the US-Canada border some seven times in the production process."

Times have changed. Punishing one nation for a trade imbalance may play well to a crowd. But once consumers start feeling the bite in the wallet, they may very well change their tune. Sean Callebs, CGTN, Washington.