The dollar’s recent decline signals a loss of faith from global investors in the United States’ ability to honor its obligations. Harvard University’s Ken Rogoff says political dysfunction in Washington and Trump’s aggressive trade war fuel economic uncertainty and undermine America’s soft power in the world.

The U.S. dollar rose against major currencies including the yen and euro as President Donald Trump rekindled trade tensions with new tariffs on Canada and other trading partners.

“Putin will not negotiate as a loser,” one of his longtime associates tells TIME by phone from Moscow. “He knows that winners don’t get punished, and if he wins, all of this” — the sanctions, the tariffs — “will go away.”

European trade ministers pledged unity Monday after U.S. President Donald Trump announced 30% tariffs on the European Union.

Major stock indexes were slightly lower on Friday as U.S. President Donald Trump's announcement of tariffs on imports from Canada fanned worries about trade tensions, with the Canadian dollar down against the greenback.