As the Trump administration pursues talks with allies on exemptions from U.S. tariffs on steel and aluminum, China risks escalating trade tensions with the U.S. by targeting U.S. agricultural exports from Farm Belt states.

Chinese officials, facing punitive U.S. trade policies that are set to be announced Thursday, are preparing to respond with their own tariffs focused on U.S. exports of soybeans, sorghum and live hogs, according to the people with knowledge of the matter. The U.S. is among the top suppliers of these products…