Stocks were mixed in early trading on Monday after President Donald Trump over the weekend issued 30% tariffs on the European Union and Mexico, rekindling tensions with two of the largest U.S. trade partners and threatening to raise consumer prices.

The European Union is prepared to unleash a €21bn (£18.2bn) retaliation against Donald Trump after the US president announced new tariffs, Italy has said. The euro has fallen and European stocks are on track to open lower after Mr Trump on Saturday said he would impose a 30pc tariff on imports from Mexico and the EU from August 1.