US markets ended lower on Monday, following falls in overseas markets after US President Trump announced tariffs on Canada, Mexico and China.

Trump later modified his weekend tariff announcement, suspending the levies on Mexico for 30 days following talks with his Mexican counterpart.

But all three major US indices still ended lower, with the Dow Jones Industrial Average falling 0.3 percent to 44,421.91.

The S&P 500 fell 0.8 percent to 5,994.57, and the Nasdaq Composite Index shed 1.2 percent to 19,391.96.

The tariffs are "considered a cost that will likely push prices higher and growth lower," said Jack Ablin of Cresset capital, who noted Trump has threatened tariffs on other countries.

"The market is adapting not just to more tariffs, but more headline risk," he said.

Monday's session underscored the greater exposure of some sectors to tariffs compared with others.

Among those falling were automakers like General Motors, down 3.2 percent, homebuilders such as Lennar, down 3.9 percent, and agricultural equipment maker Deere & Co., down two percent.

But the reaction in other sectors was muted. Companies in finance, insurance and telecommunications, either advanced or experienced small declines.

Apart from trade talks, key events this week include quarterly earnings from Google parent Alphabet and Ford, and US jobs data. (AFP)