U.S. stocks initially fell sharply on worries about President Trump’s tariffs but pared their losses after Mexico said it had negotiated a one-month reprieve.

The S&P 500 was down 0.9% in afternoon trading after Asian and European indexes logged worse drops. The Dow Jones Industrial Average was down 155 points, or 0.4%, as of 1:11 p.m. Eastern time, and the Nasdaq composite was 1.4% lower.

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