According to Bloomberg analysts, The offshore yuan could drop beyond its record low of 7.3749 against the dollar if China’s retaliation to US tariffs results in a prolonged trade war like the countries engaged in from 2018-19 during President Donald Trump’s first term. The 10% tariffs on all China exports to US from Feb. 4, on top of existing tariffs, fall short of his earlier 60% tariff threat, which remain possible in the absence of a deal between the two countries. That threat continues as Tuesday’s tariffs come despite Trump not imposing any in his first days in office, and his comments in an interview aired Jan. 23 that he’d prefer not to.