
Dollar falls to three-month low as tariffs and growth fears rattle markets
President Donald Trump's new 25% tariffs on goods from Mexico and Canada took effect, along with a doubling of duties on Chinese goods to 20%, at 12:01 a.m. EST (0501 GMT).
In response, China said it will impose additional tariffs of 10-15% on certain U.S. imports from March 10. Canada has said that retaliatory tariffs on the United States would take effect on Tuesday and Mexico is expected to follow suit.
Worries of a trade war and the hit to other countries' economies might be expected to boost the U.S. dollar, but recent weak economic data has weighed on the currency and bond yields in the United States.
Concerns about duties on imports dominated commentary from manufacturers in the weak Institute for Supply Management survey on Monday, which continued a run of tepid data.
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