President Donald Trump has suspended the tariffs on Mexico and Canada for 30 days after they agreed to strengthen borders.
Mr Trump signed an executive order on Saturday that would place 25% tariffs on goods imported from Canada and Mexico and a 10% tax on China, as he demanded an end to illegal immigration and drug trafficking.
The president has now delayed the tariffs for his neighbouring countries following discussions, but the tax on China will remain.
China has since hit back against Donald Trump with counter tariffs targeting the United States' energy sector, intensifying the looming trade war.
Canadian prime minister Justin Trudeau took to social media on Monday to say Canada would spend $1.3billion on a plan to reinforce its border with new helicopters, technology and personnel, as well as additional resources to stop the flow of fentanyl.
The global stock market has come under pressure following Trump's threats of new tariffs, but has recovered some of its losses after the delay for Canada and Mexico.
Trump rattled investors by vowing to proceed with the tariffs over the weekend, triggering what was quickly described as a “Trump tariff tantrum” in the markets on Monday.
In London, shares fell in companies across several industries. Shares in Scottish Mortgage Investment Trust, which has investments in US tech companies, the retailer JD Sports Fashion and the miner Antofagasta fell more than 4%.
The pound edged lower against a strengthened US dollar, down 0.6% at $1.23, but rose 0.5% to €1.20 as the euro came under pressure.
FTSE 100
The UK's flagship share index, the FTSE 100, was down five-points at 8,562 shortly after opening this morning.
Brent crude oil futures were down 0.41%, trading at $75.14 a barrel.
Companies reporting today
04-Feb | |
|---|
Advanced Micro Devices* | Q4 Results |
Alphabet* | Q4 Results |
Crest Nicholson Holdings | Full Year Results |
Diageo* | Half Year Results |
PayPal* | Q4 Results |
PepsiCo* | Q4 Results |
Pfizer* | Q4 Results |
Vodafone Group* | Q3 Trading Statement |