President Donald Trump announced on Thursday he would impose hefty tariffs on imported steel and aluminum to protect U.S. producers, risking retaliation from major trade partners like China, Europe and neighboring Canada as well as helping to trigger a large selloff on Wall Street.

Top aides to President Donald Trump look to push a tough line on trade in talks on Thursday with an envoy of Chinese President Xi Jinping, with a White House official saying a frank exchange of views was expected.

Despite the tensions between the two nations in both economic and geopolitical arenas, Washington and Beijing have generally recognized the mutual benefits of trade. This form of “controlled tension” has in the past been able to navigate the contours of various trade disputes. All that changed in 2016.

China’s Commerce Ministry has launched an anti-dumping and anti-subsidy investigation into American exports of sorghum, which is believed to be underpriced and damaging to Chinese farmers. This may result in the imposition of tariffs on sorghum imports from the U.S. The action appears to be retaliation against tariffs imposed by the U.S., and may result in a larger trade war.

The U.S. Commerce Department said on Tuesday it had made a final determination that imports of aluminum foil from China are being sold in the United States at less than their fair value and producers are benefiting from subsidies from Beijing.

Trump risks the US Dollar for a trade war with China.

China has removed anti-dumping and anti-subsidy duties on U.S. white-feathered broiler poultry products.

China is requiring importers of a U.S. industrial chemical to post deposits in preparation for possible anti-dumping duties amid rising trade tension with Washington.

There are only two major pathways open: a continuation of relatively minor actions on both sides that nonetheless could spiral into a tit-for-tat trade war that no one wanted; or then a concerted effort on both sides to engage in negotiations.

China will oppose any “unfair and unreasonable” trade measures by countries such as the United States against its steel companies, a Chinese government think-tank said on Tuesday, arguing protectionism will “poison” the industry.