Good Wednesday morning. I'm Anna Palmer. And welcome to your Politico Playbook audio briefing, sponsored by Postmates.

And I'm Jake Sherman, the top talker this morning, a trade war, buckle up Wall Street in Washington.

We have an early morning bombshell. The headline in Bloomberg, which went up before 5 a.m.

This morning, China hits soybeans, aircraft, and counterpunch to Trump tariffs.

Here's their story. China said it would levy an additional 25% tariff on imports of 106 U.S.

products, including soybeans, automobiles, chemicals, and aircraft in response to a proposed

U.S. duties on its high-tech goods. The key quote from the Bloomberg story,

China's response was tougher than what the market was expecting. Investors didn't foresee the

country levying additional tariffs on sensitive and important products such as soybeans and airplanes.

Two potential political impacts, one from Josh Green at Bloomberg, new Chinese tariffs this morning

could have big effect on U.S. midterms. Per Bloomberg data, biggest soybean producers include

Ohio, Iowa, Missouri, and Indiana. This could also completely dwarf the good news Republicans

have celebrated from tax reform and completely screw up their strategy to use it as the party's

main selling point in the midterms.

Dow futures were down on the news and looking like they would wipe out yesterday's gains.

Here's what to watch for.

Will Trump say something conciliatory to calm markets?

Look for him to say a deal is possible, or the U.S. should come to the table to talk.

Wall Street is watching. The president has

nothing on his schedule today besides a dinner. Expects cable TV to crucify the president today.

Trump could be watching TV splashed with red arrows pointed downward as the markets tumble on this

up-the-ante move by China. CNBC's Brian Sullivan noted near the top of the 5 a.m. hour that these

...