The dollar experienced a decline on Thursday as President Donald Trump's announcement of more severe tariffs against key trading partners startled investors, causing them to seek refuge in the yen and Swiss franc. Trump's decision involved implementing a 10% baseline tariff on all imports to the United States and higher duties on specific trading partners, affecting around 60 countries, with tariffs set to commence on April 9. This escalation of trade tensions has raised concerns about a potential global economic slowdown due to a full-fledged trade war. Market analysts are monitoring the situation to determine if there is room for negotiation on the tariffs or if further trade restrictions may arise. As a result of the market's risk-averse sentiment, the Australian and New Zealand dollars weakened, while the Japanese yen and Swiss franc strengthened as safe-haven assets. The euro initially rose in response to the tariff news and held steady later, reflecting Europe's measured response in supporting its economy rather than retaliating. Additionally, the Chinese offshore yuan and the Mexican peso both faced declines following the tariff announcement.