U.S. stocks tumbled Monday on the heels of news that China is devaluing its currency in response to President Donald Trump's tariff war.
The Dow Jones Industrial Average posted a loss of 767 points by the close of business as world markets also fell to the news that the Chinese yuan was reduced to its lowest valuation in a decade.
The move came after Trump's announced tariffs last week on $300 billion in Chinese goods.
NPR reporter Jim Zarroli laid out what the currency devaluation could mean for U.S. businesses:
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The decline makes Chinese imports in the United States less expensive, and thus makes U.S. companies less competitive. It also lowers profits for U.S. companies that do business in China.
"If this was an all out currency war—the U.S. would hands down lose," tweeted strategist Viraj Patel. "Beijing far more advanced in playing the currency game and [has] bigger firepower."
Trump took to Twitter to vent his frustrations Monday.
"China dropped the price of their currency to an almost a historic low," the president tweeted. "It's called 'currency manipulation.' Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"