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

President-elect Donald Trump vowed additional tariffs on China as well as US neighbors Canada and Mexico, providing a sharp counter to expectations that he might temper his trade policies during a second term.

Any speculation that U.S. President-elect Donald Trump would adopt a 'softly, softly' approach to his trade and economic policies was jolted overnight as he warned of immediate tariff hikes on Canada, Mexico and China - hitting the currencies of all three.