Mexican president commits 10,000 troops to prevent drug trafficking to US in return for one-month delay in levies

• US politics live – latest updates

Donald Trump and his Mexican counterpart, Claudia Sheinbaum, have announced a last-minute “pause” in threatened US tariffs​ amid fears of a global trade war, with Canada and China expected to be hit with sudden increases in levies on exports to the US from Tuesday.

The details of an agreement came on a day of extreme volatility in global financial markets as rattled investors reacted to the prospect of a dramatically escalating dispute involving the world’s largest economies.