The yuan hit a 9-month low after Trump's announcement

According to Reuters, immediately after US President Donald Trump's announcement to impose 10% tariffs on $300 billion of Chinese goods, the yuan fell in price as soon as August 2.

Specifically, China's yuan fell to its lowest level since November 2018 in the early hours of the morning. The exchange rate of the yuan against the USD fell by as much as 0.7%.

In markets outside mainland China, there was a time when the yuan fell to 6.9756 yuan to 1 dollar. In the mainland market, China's local currency at one point fell to 6.95 yuan to 1 dollar.

Besides, Chinese stocks fell sharply with the Shanghai Composite Index down 1.7% in morning trading, while the blue-chip CSI300 lost 1.8%. In Hong Kong, the Hang Seng Index fell 2.4%.

The move pushes the trade war between the world's two largest economies to a new high, after the war has disrupted global supply chains and roiled global financial markets for more than a year.

Iris Pang, Greater China economist at ING, said Beijing could retaliate against the U.S. by increasing existing tariffs on U.S. goods.