Stock indexes fell sharply in volatile trading Thursday as investors took in the latest announcements from U.S. President Donald Trump on tariffs, while the U.S. dollar eased as investors turned risk-averse.

Even though the U.S. dollar has been sliding on international exchanges for weeks, the president didn’t even pay lip service to the idea of a strong greenback — let alone endorse an actual strong-dollar policy — in his speech on Tuesday.

The trade war promised by President Donald Trump stepped up a gear overnight, with 25% tariffs on goods from Mexico, Canada, and an additional 10% on China taking effect. No one was really sure that it would actually happen—a month ago,

In response, China and Canada have said that retaliatory tariffs on the US would take effect on Tuesday, and Mexico is expected to follow suit.

The US dollar, once the undisputed king of currencies, may be losing its luster. While the greenback is expected to retain a significant portion of its strength in the coming months, a Reuters survey reveals a growing sense of unease among currency strategists,

"We would not have expected these market moves at the start of the year," Deutsche Bank, wrote Tuesday, noting the recent decline in the dollar.