China warns of financial chaos after US labels it a currency manipulator

China reportedly said on Tuesday that the U.S.’s decision to label Beijing a currency manipulator will damage and cause chaos in international financial markets, Reuters reported. 

The People’s Bank of China said the label would “severely damage international financial order and cause chaos in financial markets,” according to Reuters.

China’s central bank also said the country “has not used and will not use the exchange rate as a tool to deal with trade disputes.”{mosads}

The U.S. Treasury Department labeled China a currency manipulator on Monday amid an escalating trade war between the two nations. 

In its announcement, the department said Secretary Steven Mnuchin will “engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.”

The labeling followed a long promise by President Trump, who championed the decision on Twitter. 

“China has always used currency manipulation to steal our businesses and factories, hurt our jobs, depress our workers’ wages and harm our farmers’ prices. Not anymore!” Trump tweeted Monday.

The Dow Jones Industrial Average plunged on Monday after China decided to intervene in its currency markets to make its exports cheaper in the face of U.S. tariffs.