China has reiterated its threat to take “necessary countermeasures" following Trump’s decision to impose 10% tariffs on China.

Trump has long proposed raising tariffs—or taxes on imported goods that the businesses importing them pay the U.S. government—before the election, and said in November he’ll impose a 25% tariff rate on all imports from Mexico and Canada on the first day of his presidency and will impose an additional 10% tariff rate on all imports from China on top of other tariffs.

David Roche of Quantum Strategy discusses how Trump's potential tariffs on Europe will spill over into foreign policy and regulation, posing a big challenge to how the European Union will respond.