Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

China, Canada, Mexico, and the EU are responding to Trump’s trade war against each of them with their own retaliatory tariffs — or threats of them — against products from bourbon whiskey to cheese to chocolate.

Why these products are targeted: As Mexico’s Secretary of Economy Ildefonso Guajardo told Mexican media earlier this week, it’s about targeting districts whose lawmakers may get angry calls from constituents and companies in their states, and who then may try to get a hold of Trump's ear to influence how he moves forward.

“These are products that have political implications in districts, where important house members and senators have been raising concerns to President Trump about how he is managing these decisions. At the end of the day, the effect of this will fall over voters that live in districts that have a voice and a vote in the U.S. Congress.”
— Sec. Guajardo
  • For example: The dairy industry in Wisconsin, which House Speaker Paul Ryan represents, might explain cheese and yogurt's presence on the list. Kentucky, which Senate Majority Leader Mitch McConnell represents, might explain the bourbon. And Trump is not bound to want to upset Pennsylvania voters who were key to his 2016 victory, which may explain the chocolate.

What's happened:

  • These threats of retaliatory tariffs come in light of the fact that Trump had exempted Canada, Mexico, and the EU until this Friday from tariffs on imports of steel and aluminum. (Here’s what happened this week in the trade war.)
  • The Trump administration announced tariffs on Chinese goods in March, and more in April, and China announced tariffs in response each time worth tens of billions of dollars.

The list of products:

  • China: Fruit, nuts, wine, pork, aircraft, automobiles (since been cut), soybeans, sorghum (since been cut), corn, cotton, wheat, forms of beef, cranberries, orange juice, whiskey, tobacco, liquid propane, some polyester, plastic products, chemicals, and forms of aluminum and steel. Fortune has a list of 106 products hit.
  • Canada: Cheese, pizza, quiche, chocolate, whiskies, toilet paper, paper towels, strawberry jam, ketchup, mustard, yogurt, lawn mowers, refrigerators, washing machines, maple syrup, beer kegs, mineral water, fresh orange juice, mayonnaise, salad dressing, automatic dishwasher detergents, cucumbers, gherkins, ball point pens, felt-tipped pens, plywood, bobbins, roasted coffee, licorice candy, toffee, hair spray, shaving creams, soaps, candles, kitchenware, manicure and pedicure preparations, handkerchiefs, facial tissues, printed postcards, some insecticides, iron products, sailboats, some chairs, mattresses, plastic bags, sleeping bags, playing cards, soy sauce, and forms of aluminum and steel.
  • Mexico: Lamps, pork, cheese, flat steel, apples, pears, grapes, cheese, blueberries, sausages, and other meat products.
  • EU: Bourbon whiskey, motorcycles, denim, cigarette, cranberry juice, orange juice, some pants and shorts, some bedlinen, corn, tobacco, t-shirts, motor boats, some rice, some beans, peanut butter, and forms of aluminum and steel.

What to watch: Some of these retaliatory measures have a comment period, like in Canada, and could still be tweaked before becoming finalized. The retaliatory measures from the EU could take years to be implemented. Plus, Trump has left the door open to future negotiations, so the entire premise of the tariffs and the retaliation may fall apart in the end after all, adding an amount of uncertainty to the entire situation.

Impact, for now: Consumers are likely to pay more for a chunk of goods, but it’s not just individuals that will feel the burn. Companies are likely going to grapple with a cascade of effects beyond just rising prices — including potential layoffs and sliced paychecks, too.

Go deeper

Felix Salmon, author of Capital
38 mins ago - Economy & Business

How anti-greed backlash killed the European Super League

Photo: David Cliff/Anadolu Agency via Getty Images

The 48-hour rise and fall of the European Super League is the perfect encapsulation of how anti-greed sentiment has changed the rules of capitalism.

Why it matters: The highly-complex structures of capitalism are built from the mostly base motivations of individuals chasing money. That's been condemned and celebrated in equal measure — but has also largely been accepted.

Senate Republicans unveil $568 billion infrastructure counterproposal

Sens. John Barasso and Shelley Moore Capito. Photo: Caroline Brehman/CQ Roll Call/Bloomberg via Getty Images

Senate Republicans formally rolled out the framework for their $568 billion counterproposal to President Biden's $2.5 trillion infrastructure plan on Thursday.

Why it matters: The package is far narrower than anything congressional Democrats or the White House would agree to, but it serves as a marker for what Republicans want out of a potential bipartisan deal.

House passes bill that would make D.C. the 51st state

House Speaker Nancy Pelosi and Washington, D.C. Mayor Muriel Bowser. Photo: Alex Wong/Getty Images

The House of Representatives voted 216-208 on Thursday to pass a bill that would grant statehood to Washington, D.C.

The big picture: It's the second year in a row that the Democratic-controlled House has voted to recognize D.C. as the 51st state. The bill now heads to a divided Senate, where it faces little chance of reaching the 60 votes necessary to send to President Biden's desk.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!