In the newest wrinkle in the U.S.-China trade war, China announced it will raise tariffs from 10% to 25% on $60 billion of U.S. goods beginning on June 1. It's a retaliatory measure after President Trump last week raised tariffs to 25% on $200 billion of Chinese goods. But who's really paying for the tariffs? Andrew Mach speaks to Bloomberg News senior economics writer Shawn Donnan about what happens when the politics of getting tough on China collides with the economics of the tariffs for the rest of the world.

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Bloomberg's latest report: Trump Says He'll Meet China's Xi Amid Deepening Rift Over Trade

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TicToc is a daily news podcast hosted by Andrew Mach (@andrewjmach), produced at Bloomberg Worldwide HQ in New York City. You can follow up with us and watch our reporting @tictoc. If you like it, be sure to rate us on iTunes, and tell your friends!