The dollar strengthened broadly on Tuesday after U.S. tariffs on Chinese goods came into effect, triggering swift retaliation from Beijing and prompting a selloff in the Chinese yuan and the Australian dollar.

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 U.S. dollar index ( DXY) rose 0.15% to $108.6 after U.S. tariffs on Chinese goods came into effect, but later surrendered gains and was down 0.46% to 108.49 at the time of writing.

China's finance ministry said it would impose levies of 15% for U.S. coal and 10% for crude oil, farm equipment and some cars.