U.S. President-elect Donald Trump has threatened to sharply raise tariffs on all Chinese imports and close some loopholes Chinese exporters currently use to sell their products more cheaply in the U.S.

Donald Trump says he will impose a 25% tariff on goods coming from Mexico and Canada, plus an extra 10% on Chinese goods.

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