The U.S. dollar has fallen to a three-month low, and Wall Street has taken a hit, fearing that growing trade tensions under President Donald Trump’s administration might lead to an economic slowdown. The latest round of tariffs on imports from Canada, Mexico and China has spooked financial markets. The U.S. Dollar Index, which tracks the currency against a basket of others, fell 0.2%, a sign of increasing uncertainty. At the same time, the S&P 500 fell 1.8%, erasing gains since Trump’s election. The impact of the tariffs is already being felt around the world; the Canadian dollar and Mexican peso hit their weakest in a month. European markets also fell, led by German car makers. It isn’t just financial, of course; legal experts are warning of potential contract disputes. Where suddenly implemented tariff hikes affect businesses, they may try to renegotiate or exit otherwise sound agreements. It has set off fears of a ‘Trumpcession’ and investors and businesses are watching the evolving trade policies and their economic consequences very closely.
Dollar Hits Three-Month Low
