President Trump floated a 10% trade tariff on China, possibly starting on February 1, based on the accusation the country is sending fentanyl to Mexico and Canada. In addition, he pointed out that we have a $350 billion deficit with the European Union that could also trigger a tariff.

Bloomberg’s Josh Wingroven and Hadriana reported that the only action taken so far is a call to review trade practices. That is due by April 1.

Reuter’s David Lawder and Andrea Shalal report that China said it is willing to maintain communication with the U.S. to handle differences and expand mutually beneficial cooperation.

The U.S. is China’s largest trading partner. A study commissioned by the American Soybean Association and the National Corn Growers Association found that U.S. soybean farmers could lose $3.6 to $5.9 billion in annual production value and U.S. corn farmers could lose $0.9 to $1.4 billion in actual production value depending on how China reacts to U.S. tariffs.

Zhao Minghao, a professor at the Institute of International Studies at Fudan University in Shanghai, said there is a possibility the two sides can strike a deal. It remains to be seen if there is a good match between what Trump and Beijeng can offer each other.

Read more about the proposed 10% trade tariff on China here.