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.

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.

The three trade partners have deeply integrated economies and supply chains, with an estimated $2bn (£1.6bn) worth of manufactured goods crossing the borders daily. Trump says he wants to protect American industry, but many economists warn such tariffs could lead to prices rising for consumers in the US.

U.S. President Donald Trump said on Sunday that although Britain was "out of line" when it came to trade he thought it may be able to avoid tariffs, adding of the imbalance: "I think that one can be worked out".