The US dollar weakened on Tuesday as President Donald Trump’s latest tariffs took effect, targeting Canada, Mexico, and China. This unexpected move has sent an alarm signal to investors and consumers. Typically, the dollar strengthens when the US imposes tariffs on trading partners.
However, according to Stephen Miran, Trump’s nominee for the Council of Economic Advisers, previous experiences have shown that tariffs can lead to a weaker renminbi (China’s currency), which offsets the impact on consumer prices. The dollar’s weakness despite the new tariffs is a cause for concern.
Source: https://www.marketwatch.com/story/the-currency-market-is-sending-an-alarming-signal-to-u-s-investors-and-consumers-6a75eb81