Global businesses are dismayed that trade negotiations between the U.S. and China have devolved over the past few days, according to global trade lawyers, who say the resulting threat of more aggressive retaliatory tariffs from both sides has their clients worried.

“It’s really spooked clients,” said Mario Mancuso, a former official for the Committee on Foreign Investment in the United States who now leads Kirkland & Ellis’ international trade and national security practice in Washington, D.C.  “In the run-up to the trade negotiations last week, the market had priced in some resolution. There was a broad consensus—a soft consensus, but a consensus nonetheless—that there would be a trade deal. Now we’re hearing a lot of concern.”