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Soybean crops in Maryland. Photo: Mark Wilson/Getty Images

China will impose retaliatory tariffs on $60 billion in U.S. goods on June 1, per CNBC, causing the U.S. stock market to fall considerably upon market open today.

Why it matters: The increase from 10% to 25% from Beijing means that the trade war between the U.S. and China is real. The tariffs largely fire back at U.S. agricultural products like peanuts, sugar, wheat, chicken and turkey, bringing more pain to a sector which has already suffered hard losses.

  • China's Global Times also reported that portions of the tariffs are meant to reduce Chinese Boeing orders. Chinese scholars are also reportedly weighing how to dump U.S. Treasury bonds — and the mechanisms to do so.
  • China responded to the Trump administration's decision last week to increase tariffs on $200 billion in Chinese imports from 10% to 25%. The U.S. is still weighing whether or not to add tariffs to all Chinese imports.

What they're saying: President Trump discussed the trade situation with China at length on Twitter this morning...

I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!
  • And Larry Kudlow, Trump's top economic adviser, admitted on "Fox News Sunday" that U.S. businesses and consumers will feel the costs of the trade war. "Both sides will suffer on this," he said.

Go deeper:

Go deeper

3 hours ago - World

Maximum pressure campaign escalates with Fakhrizadeh killing

Photo: Fars News Agency via AP

The assassination of Mohsen Fakhrizadeh, the architect of Iran’s military nuclear program, is a new height in the maximum pressure campaign led by the Trump administration and the Netanyahu government against Iran.

Why it matters: It exceeds the capture of the Iranian nuclear archives by the Mossad, and the sabotage in the advanced centrifuge facility in Natanz.

Scoop: Biden weighs retired General Lloyd Austin for Pentagon chief

Lloyd Austin testifying before Congress in 2015. Photo: Chip Somodevilla/Getty Images

Joe Biden is considering retired four-star General Lloyd Austin as his nominee for defense secretary, adding him to a shortlist that includes Jeh Johnson, Tammy Duckworth and Michele Flournoy, two sources with direct knowledge of the decision-making tell Axios.

Why it matters: A nominee for Pentagon chief was noticeably absent when the president-elect rolled out his national security team Tuesday. Flournoy had been widely seen as the likely pick, but Axios is told other factors — race, experience, Biden's comfort level — have come into play.

Updated 5 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: WHO: AstraZeneca vaccine must be evaluated on "more than a press release."
  2. Politics: Supreme Court backs religious groups on New York COVID restrictions.
  3. World: Thailand, Philippines sign deal with AstraZeneca for vaccine.
  4. Economy: Safety nets to disappear in December Black Friday shopping across the U.S., in photosAmazon hires 1,400 workers a day throughout pandemic.
  5. Education: National standardized tests delayed until 2022.