Stock markets around the world are falling in reaction to China letting its currency slip to a 10-year low, in response to the latest round of tariffs initiated by the White House, according to MarketWatch.

In the United States, the Dow fell by 3.1 percent, losing more than 800 points; the S&P 500 also fell by 3.1 percent, losing 91 points; and the NASDAQ lost nearly 4 percent, or  300 points.

Markets were not faring much better in other parts of the globe. The Hang Seng Index in Hong Kong (which is currently dealing with a general strike) fell by 2.9 percent, the Shanghai Composite fell 1.6 percent, and the pan-European Stoxx 600 fell 2 percent.

While investors had long accounted for simmering trade tensions between the United States and China, MarketWatch said that they had largely compartmentalized these tensions in their heads, as officials had assured people that negotiations were ongoing and neither side was interested in escalating the conflict. These assurances, though, were directly contradicted last week when the White House announced a new round of tariffs, which led China to respond by lowering its currency. This step has apparently rattled investors, who can no longer ignore the collateral effects of the trade spat.

Another article in MarketWatch says that the White House has been flirting with recession by imposing  these tariffs. Analysts from both Morgan Stanley and Bank of America Merrill Lynch said that the 10 percent tariffs announced last week will slow global growth, but if they ever reach 25 percent, the global economy could see a recession within nine months.