The world’s two largest economies did not strike a deal to avert sweeping U.S. tariffs, which came into effect after midnight. Beijing immediately retaliated.

The United States should pause tariffs on Canada as it did on Mexico, the head of the largest North American aerospace union told Reuters on Monday, as industry executives weighed the impact of fresh duties on plane parts and jets.

Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada at the last minute, agreeing to a 30-day pause in return for concessions on border and crime enforcement with the two neighbouring countries.

Trump spoke with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, two days after he announced tariffs on the two countries and China. Sheinbaum said the deal came after she agreed to send 10,