China’s central bank said Wednesday that it would cut interest rates and inject more liquidity into the financial system, seeking to bolster the economy in response to trade tensions with Washington.The measures—Beijing’s first concrete steps since President Trump ratcheted up tariffs on Chinese goods in April—continued the Chinese government’s incremental approach to dealing with economic difficulties.

People’s Bank of China Governor Pan Gongsheng announced Wednesday that the lending rate to commercial banks would be reduced by 0.25 percentage points to 1.5%. The central bank also reduced the reserve ratio — the amount of money banks must hold in their reserves.