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.

Firstly, China's counter measures are limited in scope compared to Donald Trump's levy of 10% on all Chinese goods heading to the US.

America is the biggest exporter of liquid natural gas across the world, but China accounts for only around 2.3% of those exports and its major car imports are from Europe and Japan.

This calculated and selective targeting of goods may just be an opening shot by Beijing, a way of gaining some bargaining power and leverage ahead of any talks.

Officials in China may be encouraged by the cordial start to the US-China relationship since Trump took office.

The US president said he had a "very good" phone call with President Xi days before his inaugural ceremony, which was attended by the highest-level Chinese official ever to be dispatched to such an event. He has also suggested that he hopes to work with Xi on resolving Russia's war in Ukraine.

President Xi might not want to pick a fight with Trump just yet as he is busy trying to shore up his own ailing economy.

This is also familiar territory for both leaders – although they might not be keen to relive the past. There was a honeymoon period in US-China relations during Trump's last term, before the relationship soured.