The dollar has sharply fallen following the announcement of Trump's tariff plans.

The US dollar plunged against most major currencies on Monday as expectations for Trump's tariff plans, which turned out to be narrower and less inflationary than expected, diminished.

The Bloomberg dollar spot index fell sharply by 0.9%, marking its largest drop since November. The yield on 10-year US Treasury bonds also decreased after a report from the Washington Post noted that Trump plans to impose tariffs only on critically important imported goods.

This led to a rise in the euro against the dollar by more than 1%, the largest increase since August.

Such tariff plans from Trump pose a threat to currencies like the yuan and euro. However, if these plans concern only key sectors, such as defense, their impact on the global economy and inflation in the US will be limited. This means the dollar could continue its decline.

Trump is also considering implementing a universal tariff program that would apply to all countries.

Threats of trade tariffs from Trump have dominated discussions among investors and economic policymakers since his election victory in November. A broad tariff program could lead to a slowdown in global economic growth and rising consumer prices, especially if other countries respond with similar measures.