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.

Both sides benefit from economic exchanges.

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.

Several top U.S. steel and aluminum executives have been invited to the White House on Thursday for what could be a major trade announcement, according to two people familiar with the meeting.

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.

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

Now that the White House seeks to turn China’s steel and aluminum overcapacity into a national security matter, America’s new protectionism risks international trade discord.

Experts say he'll use background in economics and trade to calm waters.