The US president had said a 25% import tax on goods from Mexico would begin on Tuesday, along with tariffs on goods from Canada and China.

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It comes after a call between Mexico's President Claudia Sheinbaum and Trump saw the pair agree to temporarily shelve a 25% US import tax on Mexican goods.

European markets have already fallen in reaction to the US president announcing a 25% import tax on goods from Canada and Mexico, and 10% on goods from China.