For a perspective on the growing trade war between the United States and China and the ripple effects it's having, we turn now to Elizabeth Economy.

She served as the senior advisor for China in the Commerce Department during the Biden administration.

She's currently a senior fellow at the Hoover Institution.

Elizabeth, welcome back to the news hour.

And you should note that things do change quickly on this front.

As we sit here and speak now, just past 6 o'clock Eastern on the East Coast,

the administration is insisting it's moving forward with this ramping up of tariffs on China.

Based on what you've seen so far, how do you expect China to respond?

I mean, I think we've seen that China has produced a fairly

robust retaliatory toolkit. I assume that they are going to hit back with reciprocal tariffs.

They will undoubtedly put more export controls on additional critical minerals that we need for our technology

and defense industries. I think we can expect that they'll target additional individual U.S.

companies for investigations of some sort and perhaps place more U.S. companies on the unreliable

entity list, which means that they're not able to trade with

China. We also saw with the most recent round of tariffs that China moved to devalue its currency

to help its exports to be cheaper and also intervened in the Chinese stock market to bolster some of the

share prices. So it's taking a very active and

assertive role to try to keep the Chinese economy on course. Do you have a sense of what kind of

impact the U.S. tariffs have already had on China? What kind of impact these new tariffs could

have? What industries would be worse hit? I mean, I think there's no doubt.

The Chinese economy has been struggling ever since COVID. It has failed to rebound, you know,

post-COVID. And so it's been struggling. I think the sectors that are going to be hardest hit

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