Mexico and Canada have managed to avoid U.S. tariffs — for now — after their leaders came to last-minute agreements with President Trump. But barring another eleventh-hour deal, tariffs on goods from China were scheduled to go into force Tuesday, raising the specter of a trade war that could rile the global economy and punish American consumers.

President Trump and Mexican President Sheinbaum said they agreed to send more troops to the border and tackle U.S. arms smuggling into Mexico in exchange for a pause on tariffs.

Mexico staved off President Donald Trump’s tariffs for now, while Canada continues to fight back ahead of their midnight imposition, capping a tumultuous morning in North American diplomacy and markets.