Hello and welcome to Business Daily from the BBC.

I'm Manuel Zaragoza.

Coming up, just who benefits and loses out from President Trump's trade battle with China.

We hear from the U.S. state of Tennessee.

We don't personally source a lot of Chinese deal,

but what we're seeing is the demand that's

going to be expected on U.S. steel because of those tariffs is driving up our costs.

And in the same state, another business welcoming Mr. Trump's stance.

The import of the cheaper Chinese pencils has greatly driven our sales down of school pencils.

But will tariffs on Chinese goods save American jobs? We try to find an answer here in Business

Daily from the BBC. If you subscribe to President Trump's view of the world, then China is the bogeyman of global trade.

Beijing steals intellectual property and trades on terms that puts the US at a disadvantage,

flooding the American market with cheap Chinese imports that have closed down some US manufacturers

and cost Americans their jobs. No surprise then that the past few months

have seen Mr Trump take aim at China. He's imposed tariffs on a whole range of imports,

and China has of course retaliated with its own duties on American-made products. Many are worried

it means the world is now on the brink of a trade war. But President Trump argues the US tariffs are necessary to

protect American workers, workers like those in Tennessee. The US state voted overwhelmingly for

President Trump in the 2016 election and does more trade with China than any other state. But as

Joe Miller now reports, the prospect of a trade war is threatening to

derail Tennessee's booming recovery in agriculture and manufacturing. Lucky. Lucky. Come here, boy. Will

Hutchinson's family have been farming here on the outskirts of Nashville since 1932.

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