Existing American tariffs already restrict steel and aluminum shipments from China, which is now flooding other markets with its exports instead.

President Trump’s tariffs hurt China, but his other actions have alienated U.S. allies, giving Beijing an opening to strengthen its global standing.

Amid warnings of price increases, Canada moved quickly to retaliate, China said it had planned countermeasures and Mexico said it would soon unveil its response.

China chose swift retaliation for trade measures in the first Trump administration, but that led to an upward spiral of trade measures and much broader tariffs.

China’s vast exports in 2024 exceeded its imports on a scale seldom seen anywhere except during or immediately after the two world wars.

The unexpected action is intended to tamp down a potential bubble in the bond market fueled by investors shunning riskier assets like stocks and real estate.