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President Donald Trump signs an executive order as commerce secretary nominee Howard Lutnick (standing) and billionaires Rupert Murdoch and Larry Ellison sit in the Oval Office.Credit:AP

As trade negotiations played out,Trump welcomed billionaire media mogul Rupert Murdoch to the Oval Office as he signed an executive order to begin creating a US sovereign wealth fund. Trump praised the “legendary” Murdoch,as well as fellow billionaire Larry Ellison,who was also present for the announcement.

But Trump did not shy away from criticising Murdoch’s newspaperThe Wall Street Journal in front of him. The business-friendly paper has been highly critical of Trump’s tariffs,calling the move“the dumbest trade war in history”.

“I’m gonna have to talk to him,” Trump said. “I’ve been right overTheWall Street Journal many times,I will tell you that. I don’t agree with him on some things.”

The president also suggested the sovereign wealth fund could be used tobuy Chinese-owned app TikTok.

Murdoch was in the Oval Office even though Trump criticised the media mogul’s Wall Street Journal.Credit:AP

“I have the right to do that. We might put that in the sovereign wealth fund,whatever we make,or if we do a partnership with very wealthy people. A lot of options.”

Following a frantic day of talks,involving at least two phone calls between Trump and Trudeau,the imminent tariffs were called off after Trudeau agreed to create a “fentanyl tsar” and launch a joint strike force with the US targeting drug trafficking,money laundering and organised crime,among other measures.

Trump declared himself “very pleased” with the initial outcome. Earlier,he raised concerns about American banks being unable to open or do business in Canada,but that issue was not mentioned in either leader’s statements following the backdown.

It followed an earlier agreement with Sheinbaum,who agreed to send 10,000 members of her National Guard to Mexico’s northern border with a focus on stopping the trafficking of fentanyl,as well as illegal immigration.

Canadian Prime Minister Justin Trudeau on Saturday,announcing retaliatory tariffs against the US.Credit:AP

The US would also do more to stop the trafficking of assault weapons into Mexico,Sheinbaum said. Mexico’s retaliatory measures would also be stayed.

The backdown promptedUS sharemarkets to rally, partly recovering the losses incurred at the opening following Trump’s tariff announcement on the weekend.

Trump said Mexico,Canada andChina were all desperate to do deals to avoid the US tariffs. US Vice President J.D. Vance declared Trump’s threats had worked,accusing left-wing opponents of rooting against the US.

“How do you like them apples?” he posted on X after the Mexico deal.

Mexican President Claudia Sheinbaum,pictured in January 2024,says she will send 10,000 troops to the US border.Credit:AP

TheCanadian response to Trump’s planned tariffs had been swift and bipartisan,with Trudeau announcing retaliatory tariffs of 25 per cent and provincial premiers banning the sale of US alcohol products through state-run wholesalers and retailers.

They began to roll back those threats after the truce was announced. Ontario Premier Doug Ford paused his retaliatory measures,which included promises to rip up a contract with Elon Musk’s Starlink satellite service and ban American companies from winning contracts with his government.

A 10 per cent tariff on imports from China is due to start on Wednesday (AEDT). Beijing said the move violated World Trade Organisation rules and that it would file a lawsuit with the international body.

“China deplores and firmly opposes this,” China’s Commerce Ministry said in a statement.

It vowed – without providing further details – to take “corresponding countermeasures” to safeguard the country’s rights and interests.

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