America's tariff tiff with Canada and Mexico may have cooled, but tension with China is escalating.
Beijing has announced a package of economic measures targeting the US after President Donald Trump imposed 10% tariffs on Chinese imports.
The response includes a 15% tax on coal and liquefied natural gas, and 10% on crude oil and types of vehicles.
US Correspondent Richard Arnold told Mike Hosking that United States depends a lot on China for critical materials like gallium and germanium among others, and limits could cause serious harm to the US economy.
He says that prescription drugs are also a point of concern, as about half the generic drugs used in the US are manufactured outside of the country.
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The Mike Hosking Breakfast