To many, the US dollar depreciation following the ‘Liberation Day’ tariff announcement on 2 April 2025 defied conventional wisdom. However, open-macro models predict that the impact of tariffs on exchange rates depends on how trade partners respond. Accounting for retaliatory threats, this column explores the effects of tariffs on the US dollar by revisiting the impact of US tariffs announced or levied between 2018 and 2020, in comparison to those in 2025. When tariffs are met with retaliation,