While China could offset American tariffs by letting its currency fall, that might endanger Beijing’s recent efforts to stabilize the economy.

Trump has made clear he will use tariffs — many of which he can enact without Congress’ approval — to an unprecedented degree as a bludgeon against allies and rivals alike to achieve domestic and foreign policy goals. Rising inflation as tariffs result in higher prices on imports such as cars, electronics, food, and clothing.

Hello, this is Colum Murphy in Beijing, where Donald Trump’s penchant for doing the surprising … well … surprised everyone again this week.

President-elect Donald Trump is threatening to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office as part of his efforts to crack down on

President-elect Trump’s emphatic promise of new tariffs is sharpening the debate over how he will handle the economy. It’s likely the single most important domestic issue of his second term. Trump is poised to enjoy almost perfect timing in taking the reins of an economy on the rise.

Trump’s tariff threats have sparked significant resistance from international allies and U.S. leaders, raising concerns about economic and diplomatic fallout.