The agreement reached on Friday averted escalating import tariffs of 5% on Mexican goods.
Mexico is the largest source of US vehicle and auto-parts imports, meaning tariffs would increase costs for virtually every major manufacturer.
The move could hit a number of global companies including American and Asian firms - with the auto industry looking particularly vulnerable.
Mexico is blindsided by the announcement and will discuss it with the US before deciding if they should retaliate.
US companies are focusing their China operations on producing for Chinese customers and not for export due to the bitter trade war.
A trade war with the US has resulted in China's economy showing further signs of weakness, shown by the slowest growth in retail sales for 16 years.
The president's denial that US consumers would be affected by the spike in tariffs ran counter to the words of his own economic adviser.
Donald Trump has repeatedly called out India for its high tariffs.
European stocks had climbed 0.4% since October, led by a 0.5% bump in Germany's trade-sensitive DAX due to US president Donald Trump's decision to hold off tariffs on China goods.
Jakarta says it is proposing to impose tariffs because Chinese exports of aluminium foil had been diverted to Indonesia.
India says overseas supplies have caused or threatened serious injury to manufacturers at home.
Tariffs imposed on Cambodia and Myanmar are hurting their already poor farmers.
The reality underscores how tough it will be for the Washington to roll back a set of statist industrial policies that are rooted more in politics and ideology than economics.
The vast majority Cupertino's products are built in China and then exported globally.
China has sought to resolve the issue for the sake of the two parties' common interest but that the new US administration 'has been contradicting itself and constantly challenging China,' leading to a rapid escalation of the dispute.
If Japan offered a 'satisfactory package of concessions on market access in the near term, particularly one that included agricultural concessions', it might escape Trump's wrath.
China imports far less from the United States, making a dollar-for-dollar match on any new US tariffs impossible.
US$200 billion of Chinese products will be subject to tariffs on top of the US$50 billion in goods already slapped with tariffs actions in the year.
The US and China are also engaged in a tit-for-tat trade war, with both sides increasing the levies imposed on some goods imported from the other.
Volvo confirmed on Friday it has sought an exemption with the US Trade Representative's Office for the popular vehicle that accounted for nearly a third of its US sales in August.
The negative impact of the tariffs on US firms has been 'clear and far reaching'.
Trump’s move to slap China-built autos with an additional 25% levy in July undermined the profitability of the Focus Active that Ford planned to start shipping into the US about a year from now.
Peniaga berkata mata wang Asia rendah hari ini berikutan tumpuan beralih kepada tarikh akhir 5 Sept untuk komen awam mengenai kenaikan tarif ke atas barangan China bernilai AS$200 bilion.
Trump has criticized Harley Davidson, calling for higher, targeted taxes and threatening to lure foreign producers to the United States to increase competition.