Beijing has made its decision. After days of warning of counter measures and urging Washington to enter negotiations and “meet China halfway”, it has decided to hit back – or at least threaten to retaliate with its own tariffs.

China said it would implement a 15% tariff on coal and liquefied natural gas products as well as a 10% tariff on crude oil, agricultural machinery and large-engine cars imported from the US from 10 February.

The date is important. It means there is still time for the world’s two largest economies to step back from the brink of a trade war.

The two leaders have scheduled a call later this week, according to the White House, and there are signs, despite today’s announcement, that China is in listening mode and is keeping the door open for talks.