US President Donald Trump has agreed to pause sweeping tariffs on Mexico and Canada for one month while the nations thrash out agreements on trade and security.
The last-minute move came hours before a midnight deadline was due to see hefty tariffs come into effect on goods from Mexico, Canada and China.
After a lengthy phone call between the two nation's leaders, Mr Trump confirmed he agreed to a pause after Mexican President Claudia Sheinbaum committed to sending 10,000 National Guard troops to the US-Mexico border.
"These soldiers will be specifically designated to stop the flow of fentanyl and illegal migrants into our country," Mr Trump said on Truth Social.
The two nations will use the month-long suspension to engage in further negotiations which will be led on the US side by Secretary of State Marco Rubio who will meet with Mexican officials.
"I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a 'deal' between our two Countries," Mr Trump wrote on Truth Social.
Ms Sheinbaum said the US had agreed to do more to prevent the trafficking of high-powered weapons into Mexico.
Later, Canadian Prime Minister Justin Trudeau said the tariffs threatened against his country would be postponed by at least 30 more days after he promised more cooperation on border security.
Mr Trudeau pledged to send nearly 10,000 frontline personnel to ensure "24/7 eyes" on the US-Canadian border.
He also announced plans to appoint a "Fentanyl Czar" and establish a Canada-US Joint Strike Force to combat organised crime, fentanyl and money laundering.
Mr Trump has cited the trafficking of fentanyl across Canada's border into the US as a reason to justify significant tariffs on its northern neighbour.
Earlier this month, he described the amount of fentanyl coming into the US from Canada as "massive".
But data from US Customs and Border Protection has found the total amount of fentanyl seized by authorities in the 2024 fiscal year, amounts to roughly 0.2 per cent from Canada, compared to 96.6 per cent from Mexico.
"It is my responsibility to ensure the safety of ALL Americans, and I am doing just that. I am very pleased with this initial outcome," Mr Trump said after striking the deal with Canada.
Neighbours in dispute
Despite the month-long delay, some believe the damage has already been done between the two neighbours.
"The whole thing has been unusual and abnormal, and to Canada very insulting," James Blanchard said, who served as the former US ambassador to Canada under Democrat Bill Clinton.
"Mr Trump has insulted them, made fun of them, made threats, called them the 51st state [of America] and attacked Prime Minister Trudeau."
"How do we put the genie back in the bottle? It's going to be a real challenge."
At the weekend, Mr Trump signed a string of executive orders announcing Mexico and Canada would be hit with a 25 per cent tariff on all imported goods and a 10 per cent tariff on all Chinese imports from Tuesday, local time.
Energy products from Canada, such as oil, will be taxed at a lower rate of 10 per cent.
The orders against America's top trading partners have sparked a trade war that threatens to derail economic growth and hike costs for US consumers on a raft of goods ranging from avocados and tequila to livestock and electronics.
The protectionist measures from the US mark a drastic departure from its trade policy, with some allies raising the possibility of long-term fractures in US relations with its neighbours.
Mr Trump has long blamed Mexico, Canada and China for bringing drugs and illegal migrants into the nation.
On the campaign trail, he promised to utilise tariffs against other nations and pledged to crack down on illegal immigration and crime.
The US and Mexico are each other's largest trading partners, while trade between the US and Canada amounts to nearly $US1 trillion a year.
Speaking at the weekend, Mr Trump admitted the measures could cause "a little pain" for Americans as increased taxes on levied goods often result in costs being passed on to importing businesses and consumers.
While the deal eased the pressures on Mexico and Canada, prospects for a comparable reprieve for China appeared dim, as tariffs on China remain poised to begin at midnight, local time, on Tuesday.
Mr Trump said he planned to speak with Chinese leaders in the coming 24 hours, and warned if he could not make a deal with them, the tariffs would be significant.
"We have meetings planned, and we'll see what happens. But that was just an opening salvo," Mr Trump said.
"If we can't make a deal with China, then the tariffs will be very, very substantial."
China has indicated it would challenge the Trump administration's tariffs at the World Trade Organization and take unspecified countermeasures.
'Unnecessary and stupid': EU leaders react
Meanwhile, European nations have signalled the European Union would be prepared to retaliate against the US if Mr Trump followed through on his threats to impose tariffs on European goods.
It comes after Mr Trump warned tariffs would "definitely happen" with the EU.
"The European has abused the United States for years, and they can't do that, and they want to make a deal," Mr Trump said.
"Let me tell you, in all cases, they all want to make deals. They've been abusers, and they want to make deals. So we'll see."
Speaking ahead of a meeting in Brussels, EU leaders called for calm and stressed the value of cooperation, but indicated they would not hesitate to respond with tariffs if the bloc was targeted.
Polish Prime Minister Donald Tusk told the meeting the EU should do all it could to avoid "totally unnecessary and stupid tariff wars," with a long-standing ally.
Financial markets have also been rattled by the prospect of a sharp global slowdown and resurgent inflation caused by Mr Trump's incoming tariffs.
with Wires
