Goldman Sachs has cautioned that the yuan is likely to experience further declines due to the imposition of tariffs on Chinese exports by President-elect Donald Trump, which could potentially lead to a trade war.

According to strategists, including Kamakshya Trivedi, China is expected to be the primary target of these trade measures. The firm predicts that tariffs on Chinese goods could effectively increase by 20 percentage points, with implementation anticipated early in Trump's administration. This move is expected to have significant consequences for the Chinese economy and the valuation of the yuan in the global market.