The Koch network took on Trump's trade war ... and lost

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VIEW IN BROWSER | SUBSCRIBE FRI, SEP 20, 2019 CNBC POLITICS EDITOR'S NOTE Hello readers,   It's back to the drawing board for the Kochs.    Officials with the influential, libertarian-leaning political network acknowledged to CNBC's Brian Schwartz that its campaign against President Trump's tariff war with China hadn't panned out. "I think that we were wrong about how to change this one," one official said. A new strategy is in the making, and it will focus on grassroots activism. That said, it's not yet clear what the message will be.   The Koch retreat is a clear political victory for Trump. While it's way too soon to tell how his fight with China will end, the president needs to maintain support in his base if he hopes to win reelection next year. The trade war is taking a toll on some of Trump's key constituents, such as farmers. But, as the Koch network learned, many voters think that it's important to take on China, at least for the moment. Even if the fight results in some interim economic pain.   It's still a delicate matter for the president, however. There are already signs that the tariff war is dragging on the otherwise solid American economy. If growth takes a sharp downward turn next year, and economic combat with China persists, voters' patience with Trump could well run out.   Thanks for reading. Have a great weekend.   Have friends or colleagues who might like this newsletter? They can sign up here. For more on the intersection of business and politics, sign up for the weekly Capital Exchange newsletter here. Mike Calia @Michael_Calia KEY STORIES  'We were wrong': Koch network to change strategy against Trump's trade war after ad blitz flops Network officials also said voters should expect more of a Koch focus on grassroots activism throughout the 2020 election cycle. Pete Buttigieg met with Black Lives Matter after a police shooting. It didn't go well Activists with Black Lives Matter, who met privately with Buttigieg in the weeks after police shot and killed Eric Logan, say the 37-year-old mayor brushed off their concerns about police violence in the city he has led since 2012. New York Mayor Bill de Blasio drops out of presidential race "I feel like I've contributed all I can to this primary election," he told MSNBC's "Morning Joe." "And it's clearly not my time. So I'm going to end my presidential campaign." 'The era of economic surrender is over,' says Mike Pence on trade with China U.S. Vice President Mike Pence on Thursday struck an unyielding tone on America's position in its trade war with China. Trump grants tariff exemptions to plastic straws, dog leashes and more from China More than 400 Chinese products will be temporarily exempted from tariffs that President Donald Trump's administration imposed last year. Idea of Warren presidency frightens investors at conference: 'She's not my candidate of choice' In a room full of avowed capitalists, policies that sound to some like socialism are bound not to go over well. Attack on Saudi Arabian oil facilities was 'sophisticated,' Pentagon says The Pentagon on Thursday said the recent attack on Saudi Arabian oil facilities represented a "dramatic escalation" in tensions within the region. Ruth Bader Ginsburg fires back against critics who say she should have retired under Obama Supreme Court Justice Ruth Bader Ginsburg, recovering from cancer treatment, continued her recent string of speaking engagements.       Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2019 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS