The U.S. dollar edged lower on Tuesday as President Donald Trump's tariff threats were interpreted more as a negotiating tactic rather than an end goal, a day after he suspended planned measures against Mexico and Canada.

US benchmark equity indexes ended higher Tuesday, shrugging off trade concerns after China announced a series of retaliatory tariffs against the US. * China will impose additional tariffs of 15% on coal and liquefied natural gas imports from the US and 10% higher duties on items including American crude oil and agricultural machinery,

The U.S. dollar gave up some gains on Tuesday as China hit back with sweeping tariffs on imports of multiple U.S. products. The greenback had skyrocketed over the weekend, climbing to a three-week high on early Monday after President Donald Trump lived up to his promise and imposed tariffs on imports from Canada,