Shares of automakers and megacap tech stocks bore the brunt of a wider equity pullback on Monday after U.S. President Donald Trump ordered sweeping tariffs against Mexico, Canada and China, sparking fears of a global trade war that could hit growth.

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

US President Donald Trump has ordered tariffs on Canada, Mexico, and China, that will start on Tuesday. Investors fear that the tariffs will increase inflation and slow Federal Reserve rate cuts. Markets in Asia and US futures fell on Monday, while the dollar ticked up.

President Donald Trump said the sweeping tariffs that he has imposed on Mexico, Canada and China may cause "short term" pain for Americans as global markets reflected concerns the levies could undermine growth and reignite inflation.

(Reuters) - U.S. President Donald Trump has ordered sweeping tariffs on goods from Mexico, Canada and China, demanding that they curb the flow of illegal immigrants and fentanyl into the United States, kicking off a trade war that could dent global growth and stoke inflation.

Donald Trump hit Canada, Mexico and China with steep tariffs on Saturday, and oil and gas groups are relying more heavily on carbon offsets to reach climate targets. Plus, EU governments are exploring ways to include the UK and Norway in a “coalition of the willing” dedicated to ramping up the continent’s defence.

Canada and Mexico ordered retaliatory tariffs on American goods in response to sweeping tariffs imposed by President Donald Trump