Major U.S. indexes logged their biggest declines of the year with the Dow Industrial Average losing more than 760 points, or about 3%. It fell more than 950 points earlier in the session, marking its worse intraday drop of 2019.
The tumble came after China's central bank allowed its currency, the yuan, to fall to its lowest level against the U.S. dollar in more than 10 years.
The growing trade fight between the two countries intensified early Monday morning when Trump accused China of manipulating its currency. His comments came just days after he threatened to levy tariffs on about $300 billion of Chinese goods, extending existing tariffs.
"China dropped the price of their currency to an almost a historic low. It’s called 'currency manipulation,'" Trump tweeted. "Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!"
The Dow lost 767 points, about or 2.9%. The S&P 500 fell nearly 3% and the tech-heavy Nasdaq declined about 3.5%.