'Look!', you and I call, sinking (8)
I believe the answer is:
lowering
'sinking' is the definition.
(thesaurus)
'look you and i call' is the wordplay.
'look' becomes 'lo'.
'you and i' becomes 'we'.
'call' becomes 'ring' ('ring' can be a synonym of 'call').
'lo'+'we'+'ring'='LOWERING'
(Other definitions for lowering that I've seen before include "Reduction - long wire (anag)" , "Making less high" .)