U.S. stocks initially fell sharply on worries about President Trump's tariffs but pared their losses after Mexico said it had negotiated a one-month reprieve.

A growing number of countries, including American allies, are striking trade deals as the Trump administration erects a higher fence around its global commerce.

It has become something of a fixation in the Donald Trump war chest of options that cowing, discomforting and baffling his various counterparts on the

U.S. President Donald Trump said on Wednesday he would add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war in Ukraine, and added that these could also be applied to "other participating countries.

Firstly, China's counter measures are limited in scope compared to Donald Trump's levy of 10% on all Chinese goods heading to the US. America is the biggest exporter of liquid natural gas across the world, but China accounts for only around 2.3% of those exports and its major car imports are from Europe and Japan.

As U.S. President Donald Trump's 10% tariffs on Chinese imports went into effect early Tuesday, Beijing responded with a swaft of retaliatory economic measures targeting American companies.

European leaders were bracing for U.S. tariffs after sweeping levies imposed by U.S. President Donald Trump, affecting billions of dollars in trade between Mexico, China and Canada, roiled global markets and currencies.