Donald Trump has paused punitive tariffs on Mexico after it agreed to deploy 10,000 troops to the US border to stem the flow of fentanyl and illegal crossings.

The US president risked a global trade war when he announced plans to impose tariffs of 25 per cent on imports from Canada and Mexico, and 10 per cent on goods from China, starting this week.

Claudia Sheinbaum, Mexico’s president, announced she would immediately send soldiers to the border to stop what Mr Trump described as “the flow of fentanyl, and illegal migrants into our country”, prompting him to back down and agree to a one-month tariff freeze.

The US president said he and Ms Sheinbaum reached the agreement during a “very friendly conversation” but warned Mexico would be “penalised” if it did not stop migrants crossing into the US.

Mr Trump suggested that he expects other countries to fall in line and agree to a deal to avoid punitive taxes.

The White House said that while Mexico was “serious” about Mr Trump’s executive order on tariffs, Canada had “misunderstood” it to be a trade war between the neighbouring countries.

Speaking on Monday, Mr Trump said: “Either very, very substantial tariffs are going to be paid by them [the other countries] or they’re going to make some kind of a deal.” He then reiterated his desire for Canada to become the US’s 51st state.

The Republican said he also planned to speak with China over the next 24 hours in a bid to reach a deal.