Japanese shares closed higher, in line with most Asian markets, which took a breather after U.S. President Trump agreed to postpone the start of tariffs on Mexico and Canada by a month. The Nikkei Stock Average rose 0.

Policymakers, investors and economists are watching Trump’s trade policy amid fears that his threatened use of tariffs could batter global commerce.

Japanese auto stocks fell sharply after new U.S. tariffs against Mexico, Canada and China raised concerns about their U.S. sales of cars made in the North American trading partners and a further escalation in trade conflicts.