Former U.S. Ambassador to China Max Baucus said President Donald Trump's approach to trade negotiations with China is aggravating tensions, and called for his administration to be patient, rather than imposing additional sanctions.

Baucus, who served as the U.S. Ambassador to China from 2014-2017 under President Barack Obama, made the comments during an appearance on CNBC's "The Exchange" Monday, after China's currency exchange rate fell below seven yuan to the dollar for the first time in over a decade. The move ignited fears of a wider trade war between the two nations.

The Dow Jones Industrial Average dropped more than 900 points in afternoon trading on Monday.

Market analysts said China devalued its currency in retaliation for Trump's 10% tariff on an additional $300 billion in Chinese goods which will go into effect on Sept. 1.

"The key here is for us to get more stability, more predictability, and the way to do that is to be a little more patient," Baucus said. "This is an accelerating gulf between our two countries. We need adults on both sides of the Pacific to stop this nonsense. Let cooler heads prevail. Swallow a bit of pride."