Worldwide shares fell in early trade on Monday after President Donald Trump had announced broad rates for the largest trading partners in America.
The S&P 500 fell around 1.7 percent in the hour before the markets were open, and the technically heavy Nasdaq was almost 2 percent lower.
This weekend Trump announced the rates of 25 percent in Canada and Mexico, the taxes will be implemented on Tuesday if no eleventh hour deal is closed.
Trump also threatened the EU with similar measures and said that trade with the UK is 'out of the line', but a deal 'can be worked out'.
The Stoxx Europe 600, which represents the largest companies on the continent, fell by 1.4 percent in the morning trade.
Trump will have conversations with Canadian Prime Minister Justin Trudeau and members of the Mexican leadership on Monday morning.
“I don't expect anything very dramatic,” Trump said about the planned phone calls.
“We set up rates. They owe us a lot of money, and I am sure they will pay. '
Trump, depicted on the New York Stock Exchange in December, has announced radical rates for the largest trading partners and neighbors of the US
Both countries have promised to take revenge with their own rates for American goods when Trump's measures come into effect.
Trudeau promised 25 percent rates for $ 106 billion in American goods in a press conference on Saturday.
Mexican President Claudia Sheinbaum said she will outline her own measures on Monday.
Trump has also announced a rate of 10 percent on China and the country has promised 'corresponding countermeasures', but has not released the details.
Trump said he could increase the rates higher against countries that take retaliation measures.
The president has said that the rates are a way to force countries to 'balance their trade' and to prevent illegal immigration and the drug flow to the US.
To get rates, Trump said that affected countries should prevent people from coming into our country. They must prevent people from entering and we have to stop Fentanyl, and that includes China. '
