President Donald Trump has agreed to hold off imposing 25% tariffs on Canada and Mexico for 30 days, pulling the North American neighbours back from the brink of a potentially damaging trade war.

After last-minute calls with Trump, Canadian Prime Minister Justin Trudeau agreed to reinforce his country’s border with the US to clamp down on migration and the flow of the deadly drug fentanyl.

Earlier, Trump made a deal with Mexican President Claudia Sheinbaum. She agreed to reinforce the northern border with troops. In return the US would limit the flow of guns into Mexico.

But a US tariff of 10% on Chinese imports is still due to go into effect from 00:01 EST (05:00 GMT) on Tuesday.

Trump said he planned to speak on the phone to his Chinese counterpart soon. He described the 10% import taxes as the “opening salvo” and said they could become “very, very substantial” if no agreement is made.

Monday’s breakthrough with Canada and Mexico came as they prepared retaliatory tariffs on American goods.

After two phone calls on Monday, Trump and Trudeau posted on social media that they had reached a temporary agreement on securing the border that would avoid tariffs for at least 30 days.

Both leaders portrayed the plan as a win.

“As president, 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,” Trump wrote on his social media site Truth Social.

Trudeau said Canada was implementing a $1.3bn (£1bn) border plan that included nearly 10,000 frontline workers and more resources to halt the flow of fentanyl, a synthetic drug 50 times stronger than heroin, which Trump has cited as a major concern.

The prime minister also said Canada would appoint a “fentanyl czar” and launch a joint strike force with the US to combat crime, fentanyl and money laundering.

Much of the border security plan had already been announced by Canada in December.

It includes enhanced co-ordination with US law enforcement, increased information sharing, limiting traffic at the border, and the deployment of drones and Black Hawk helicopters for surveillance.

The news came just hours after Trump paused a separate tariff on Mexican goods in exchange for that country sending 10,000 National Guard troops to its border with the US.

President Sheinbaum broke the news on X, writing she had had a “good conversation with great respect for our relationship and sovereignty” with her US counterpart.

Trump described his phone conversation with the Mexican leader as “very friendly”.

In 2019, Mexico’s government agreed to send 15,000 soldiers to its northern frontier to avoid tariffs from the first Trump administration.

Trump has framed tariffs as a tool for growing the US economy, protecting jobs and raising tax revenue.

“Tariffs for us, nobody can compete with us because we’re the pot of gold,” he said on Monday afternoon.

“But if we don’t keep winning and keep doing well, we won’t be the pot of gold.”

But economists have warned tit-for-tat tariffs could raise prices for a wide range of products, including cars, lumber, steel, food and alcohol.

Items had already been removed from some shelves, and stock markets lurched downwards on Monday before recovering slightly with the announcement that tariffs had been suspended.

Andrew Furey, premier of Newfoundland and Labrador, acknowledged that the 30 days had brought some relief, but warned Canadians that a trade war still loomed.

He told the BBC he looked forward to using “the calm Canadian diplomatic approach to try to resolve any future tariffs”, but cautioned against further “chaotic” actions from the US president.

“We’re left as Canadians feeling a bit confused by this attack from our closest friend, our largest trading partner, our ally, family,” Furey said.

Candace Laing, president and CEO of the Canadian Chamber of Commerce, said that the “uncertainty” was leaving businesses and families “in the lurch”.

The premier of Ontario – Canada’s most populous province, which makes up about 38% of the country’s GDP – welcomed the pause and said he would suspend plans for retaliatory measures.

Premier Doug Ford wrote on X: “Make no mistake, Canada and Ontario continue to stare down the threat of tariffs.

“Whether it’s tomorrow, in a month or a year from now… President Trump will continue to use the threat of tariffs to get what he wants.”

On Sunday, Trump indicated the 27-nation European Union would be his next target for tariffs, without providing further details.

The American president suggested that Britain, which left the EU in 2020, might be spared much duties.

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If China is angry at the United States for imposing an extra 10% tariff on all Chinese goods, it is doing a good job of hiding it.

Both Canada and Mexico vowed to retaliate and Canadian Prime Minister Justin Trudeau said his country “will not back down” as he announced a 25% levy on more than $100bn (£81bn) of American goods.

US President Donald Trump then agreed to temporarily pause tarrifs on goods imported from both countries after reaching separate agreements with them. The tarrifs on China, however, are slated to go into effect on Tuesday.

So far Beijing has held its fire.

In 2018, when Trump launched the first of many rounds of tariffs targeting Chinese imports, Beijing declared that it was “not afraid of a trade war”. This time, it urged the US to talk and “meet China halfway”. And reports suggest a call between Trump and Xi Jinping could take place this week.

This isn’t to say that the announcement will not sting. It will, especially because the 10% levy adds to a slew of tariffs he imposed in his first term on tens of billions of dollars of goods.

And the Chinese government’s muted response is partly because it doesn’t want to worry its population, when many are already concerned about the sluggish economy.

But that economy is not as reliant on the US as it was back then. Beijing has strengthened its trade agreements across Africa, South America and South East Asia. It is now the largest trading partner of more than 120 countries.

The additional 10% may not offer the leverage that Trump wants, says Chong Ja Ian from Carnegie China.

“China will think that it can probably endure 10% – hence, I think Beijing is playing it cool. Because if it’s not that big a deal, there’s no reason to pick a fight with the Trump administration unless there’s a real benefit to Beijing.”

President Xi Jinping may also have another reason: he may see an opportunity here.

Trump is sowing division in his own backyard, threatening to hit even the European Union (EU) with tariffs – all in his first month in office. His actions may have other US allies wondering what is in store for them.

In contrast, China will want to appear a calm, stable and perhaps more attractive global trade partner.

“Trump’s America-first policy will bring challenges and threats to almost all countries in the world,” says Yun Sun, director of the China programme at the Stimson Centre.

“From the perspective of US-China strategic competition, a deterioration of US leadership and credibility will benefit China. it is unlikely to turn well for China on the bilateral level, but Beijing surely will try to make lemonade…”

As a leader of the world’s second-largest economy, Xi has made no secret of his ambition for China to lead an alternative world order.

Since the end of the Covid pandemic, he has travelled extensively, and he has supported major international institutions such as the World Bank and agreements such as the Paris climate accords.

Chinese state media has portrayed this as embracing countries across the world and deepening diplomatic ties.

Before that, when Trump halted US funding to the WHO in 2020, China pledged additional funds. Expectations are high that Beijing may step in to fill America’s shoes again, following Washington’s exit from the WHO.

The same applies for the aid freeze that is causing such chaos in countries and organisations that have long depended on US funding – China may wish to fill the gap, despite an economic downturn.

On his first day back in office, Trump froze all foreign assistance provided by the US, which is by far the world’s biggest aid donor. Hundreds of foreign aid programmes delivered by USAID ground to a halt. Some have since restarted, but aid contractors describe ongoing chaos as the future of the agency hangs in the balance.

John Delury, a historian of modern China and Professor at Yonsei University in Seoul, says Trump’s ‘America First’ doctrine could further weaken Washington’s position as a global leader.

“The combination of tariffs on major trade partners and freezing of foreign assistance sends a message to the Global South and OECD alike that the US is not interested in international partnership, collaboration,” he tells the BBC.

“President Xi’s consistent message of ‘win-win’ globalisation takes on a whole new meaning as America retreats from the world.”

In its bid for global governance, Beijing has been looking for a chance to upend the the American-led world order of the last 50 years – and the uncertainty of Trump 2.0 may well be it.

“Whether it really confers Beijing a key advantage – of that I’m a little less sure,” Mr Chong says.

“Many US allies and partners, especially in the Pacific, have a reason to work with Beijing, but they also have reasons to be wary. That’s why we’ve seen Japan, South Korea, the Philippines and Australia move closer together, in part because of the apprehensions they harbour towards China.”

There is “gathering momentum” for a possible trilateral relationship among Australia, Japan and South Korea, motivated by “the impact of a second Trump administration”, according to The Australian Institute of International Affairs.

All three are concerned about China’s assertiveness in the South China Sea, along with the Philippines. They are also worried about a possible war over the self-governed island of Taiwan – Beijing sees it as a breakaway province that will, eventually, be part of the country, and has not ruled out the use of force to achieve this.

Taiwan has long been one of the most contentious issues in US-China relations, with Beijing condemning any perceived support from Washington for Taipei.

But it may be difficult for Washington to hit back at signs of Chinese aggression when Trump repeatedly threatens to annex Canada or buy Greenland.

Most countries in the region have used a military alliance with Washington to balance their economic relationship with China.

But now, wary of Beijing and usure of the US, they could create new Asian alliances, with neither of the world’s biggest powers.

Trump announced the tariffs on the weekend, as Chinese families were celebrating the New Year and inviting the God of Fortune into their homes.

Bright red lanterns currently swing over empty Beijing streets as most workers have left for their hometowns during the biggest holiday of the year.

China’s response has been far more muted than Canada or Mexico’s. The commerce ministry announced plans to take legal action and use the World Trade Organisation to air its grievances.

But this poses little threat to Washington. The WTO’s dispute settlement system has been effectively shut down since 2019 when Donald Trump – in his first term then – blocked the appointment of judges to handle appeals.

As the holiday draws to a close and party officials return to Beijing and to work – they have decisions to make.

Officials have been encouraged in recent weeks by signs that the Trump administration may want to keep the relationship stable especially after the two leaders had what Mr Trump called “a great phone call” last month.

For now, China is remaining calm perhaps in the hope of a doing a deal with Washington to avoid further tariffs and to keep the relationship between the world’s two largest economies from spiralling out of control.

But some believe this cannot last as both Republicans and Democrats have come to view China as the country’s biggest foreign policy and economic threat.

“Mr Trump’s unpredictability, his impulsiveness and recklessness will inevitably lead to significant shocks in the bilateral relationship,” says Wu Xinbo, professor and director at the Centre for American Studies at Fudan University.

“Additionally, his team contains quite a few hawks, even extreme hawks on China. It is unavoidable that the bilateral relationship will face serious disruption over the next four years.”

China is certainly concerned about its relationship with the US and the harm a trade war could do to its slowing economy.

But it will also be looking for ways to use the current political pendulum to swing the international community its way and within its sphere of influence.

Chelsea striker Samantha Kerr called a Met Police officer “stupid and white” during an incident at a police station in south-west London, a jury has been told.

The Australian footballer is on trial charged with causing racially aggravated harassment to PC Stephen Lovell, in the early hours of 30 January 2023.

It is alleged that Ms Kerr and her partner, fellow footballer Kristie Mewis, had been out drinking when they were driven to Twickenham police station by a taxi driver who complained the passengers refused to pay clean-up costs after one of them was sick, and that one of them smashed the vehicle’s rear window.

Ms Kerr, 31, denies any wrongdoing.

At the police station, Ms Kerr is alleged to have become “abusive and insulting” towards PC Stephen Lovell.

Footage from the officer’s body worn camera was played to a jury sitting at Kingston Crown Court on Monday, in which Ms Kerr uses an expletive and tells the officer he was “stupid and white”.

Prosecution barrister Bill Emlyn Jones KC told the jury the comments left PC Lovell “shocked, upset, and humiliated”.

Ms Kerr described the entire situation as distressing and “a heated moment”.

Grace Forbes, defending, said: “Nobody disputes the words that were said.

“But simple words, even words like these, do not make you guilty of a criminal offence.”

She added: “The words were a comment, however poorly expressed, about positions of power, about privilege, and how those things might colour perception.”

According to the prosecution, Ms Kerr and Ms Mewis had been drinking on the night of 29 January 2023, before deciding to take a taxi home.

The driver later called the police to complain that a woman inside his taxi was trying to smash the rear window.

The operator advised the taxi driver to pull up outside Twickenham police station and to seek the assistance of police officers there, the court heard.

PC Lovell and a fellow PC were in a marked police vehicle driving towards the station, and arrived at the same time as the taxi at about 02:20 GMT.

Mr Emlyn Jones said: “The officers saw Ms Kerr crawling out of the broken rear window of the taxi.”

The court heard that both Ms Kerr and Ms Mewis approached the police car in a “distressed state”.

The prosecution continued: “Inside the police station Ms Kerr said the taxi driver had collected them but had then refused to take them to Ms Kerr’s address.

“They felt that the taxi driver was kidnapping them, and so they broke the rear window in order to escape and raise the alarm.

“PC Lovell went back outside to inspect the damage to the taxi.

“The taxi driver explained one of his passengers had been sick and he had asked them to pay for the cost of cleaning it up, and they refused.

“It was at that point that he had called the police.”

Jurors were told PC Lovell tried to explain what the taxi driver had said, but they kept interrupting him.

Ms Kerr can be heard on body camera footage claiming she had herself tried to call the police when she was in the taxi, but that they had hung up on her.

When PC Lovell replied “They wouldn’t do that”, Ms Kerr swore at the officers and twice called them “stupid and white”.

The trial continues.