President Trump granted Mexico and Canada a 30-day reprieve on U.S. tariffs after both nations agreed to intensify efforts to block illicit drugs and migrants.

The last-minute deal had echoes of Trump's first administration, when he threatened Mexico with tariffs and Sheinbaum Pardo's predecessor Andrés Manuel López Obrador defused the threat, sending thousands of troops under his newly created National Guard to deter migrants from crossing the border.

U.S. tariffs of 10% on Chinese imports came into effect on Tuesday, risking a renewed trade war between the world's top two economies as President Donald Trumppunishes China for not halting the flow of illicit drugs.