President Donald Trump has agreed to hold off imposing 25% tariffs on Canada and Mexico for 30 days, but not on China.
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.
Both Trump and Trudeau have 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.
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