President Donald Trump announced that he’s pausing tariffs on Mexico and Canada after speaking to leaders of both countries on Monday — just hours before the sweeping actions were set to go into effect.

Emerging-markets assets gained on Tuesday after US President Donald Trump delayed new tariffs on goods from Mexico and Canada, and China delivered a relatively measured response to higher levies from the US.

Last-minute phone calls pull the North American neighbours back from the brink of a trade war, but the US is still targeting Chinese imports.