STORY: TRUDEAU: "We've been here before..."

The leaders of Canada and Mexico said on Tuesday they were prepared to defend their interests amid an uncertain timeline on possible U.S. tariffs.

President Donald Trump on Monday said he was thinking about imposing 25% duties on imports from the two countries on Feb. 1, well short of the swift, day-one tariffs he promised before taking office.

TRUMP: "We're thinking in terms of 25% on Mexico and Canada..."

Instead, in a presidential trade memo, Trump essentially called for more research that could back future tariff actions.

Trump's tariff threats on Canada and Mexico stem from what he says is illegal migration and fentanyl crossing into the U.S.

Investors and foreign capitals had been bracing for action that could upend longstanding trade agreements.

The reprieve prompted a rally in global stocks and sent other currencies higher against the dollar.

Canadian Prime Minister Justin Trudeau on Tuesday said Trump's promised prosperity for America will require Canadian resources to fuel it.

"We will stay steady on focusing on defending both Canadian interests, but also on defending the economic relationship between Canada and the U.S. itself."

Mexican President Claudia Sheinbaum said her government was already in bilateral talks with the new administration. Around 80% of Mexican exports go to the United States.

"Regarding the decrees, because it's important to refer to the decrees signed yesterday by President Donald Trump. I would like to mention the following: first, the people of Mexico can be sure that we will always defend our sovereignty and our independence."

She also said her government will attend to the needs of migrants in a "humanitarian" way.

Trump's memo directed federal agencies to investigate persistent U.S. trade deficits, unfair trade practices, and alleged currency manipulation by other countries.

During his election campaign, Trump vowed to impose steep tariffs of 10- to-20% on global imports into the U.S. and 60% on goods from China.

Such duties would tear up longstanding trade agreements, including the U.S.-Mexico Canada Agreement, upend supply chains and raise costs, according to trade experts.

The U.S. trade deficit now tops $1 trillion annually.