Dollar trimmed gains on market concerns over impact of import tariffs on US economy

As reported by Reuters, market concerns over the impact of Donald Trump's sweeping tariffs and a decline in the US consumer confidence index limited the greenback’s recent gains. 

According to the news agency, the dollar index, which surged significantly between September and January, fell about 4% in the last quarter. 

Next week, the US president is going to impose new duties on imports of automobiles, chips and pharmaceuticals, Reuters says.

The news agency reports that the existing tariffs and the US administration’s plans to introduce new ones have already led to counterintuitive moves in currency markets. Investors’ concerns about a slowdown in the US economy caused by Trump’s trade policy have outweighed the assumptions that the import duties would result in a strengthening of the US national currency. 

Meanwhile, US consumer confidence fell to the lowest level in more than four years in March, indicating strong uncertainty among households, Reuters highlights.