Investment banks are predicting that the Chinese yuan will sharply fall on the probable new U.S. tariffs from the administration of President-elect Donald Trump. The tariffs might reach 60% on the imports from China, pushing the yuan to record lows; projections have been made of USD/CNY reaching 7.51 by the end of 2025. Goldman Sachs and Morgan Stanley are expecting significant impacts on the economy, with China's central bank taking to policy easing to keep the damage at a minimum. This is a critical period for China's currency stability as trade tensions increase.