Japanese auto stocks fell sharply after new U.S. tariffs against Mexico, Canada and China raised concerns about their U.S. sales of cars made in the North American trading partners and a further escalation in trade conflicts.

STORY: Donald Trump’s move to hit Canada, Mexico and China with tariffs sparked a stock market slump on Monday morning. That as investors around the world brace for retaliation by those countries, and fear a spreading global trade war.

U.S. President Donald Trump said on Sunday the sweeping tariffs that he has imposed on Mexico, Canada and China may cause "some pain" for Americans, as Wall Street and Washington's largest trading partners signaled hope that the trade war would not last long.