US stocks fell on Monday in reaction to the Trump administration's scheduled tariff rollout against Canada and China, though the major averages pared heavier losses after President Donald Trump said the US would delay duties on Mexican imports by a month.

The tech-heavy Nasdaq Composite ( ^IXIC ) closed down 1.2%, recouping a chunk of its earlier losses. Meanwhile, the S&P 500 ( ^GSPC ) fell roughly 0.7%, and the Dow Jones Industrial Average ( ^DJI ) fell 0.3%.

Consumer discretionary ( XLY ) stocks, which includes automakers, were hit over fears of tariff impacts. Tech ( XLK ) also lagged as shares of AI chip giant Nvidia ( NVDA ), iPhone maker Apple ( AAPL ) and EV manufacturer Tesla ( TSLA ) all fell over 2.5%.

The tariffs , initially set to take effect on Tuesday , include 25% duties on Canada and Mexico, and 10% on China. Energy imports from Canada will carry a lower 10% duty.

Following a Monday morning call with Mexico's president Claudia Sheinbaum, Trump announced tariffs against Mexico would be delayed by a month after Sheinbaum agreed to send soldiers to the countries' border to stop the flow of fentanyl and illegal migrants into the US.

Investors were hoping a similar deal would be announced at the 11th hour as President Trump and Prime Minister Justin Trudeau held a phone call on Monday afternoon.

Trump's tariff announcement over the weekend initially sparked retaliatory statements, as Trudeau said his country will place 25% counter-tariffs on around $107 billion in American-made products.

The US dollar index ( DX-Y.NYB , DX=F ) took a leg lower, having earlier surged to trade near its highest levels in two years. On the oil front, West Texas Intermediate futures ( CL=F ) pared gains after jumping well over 2% .