U.S. President Donald Trump said on Friday that he has indefinitely suspended the threat of tariffs against Mexico after reaching a signed agreement on immigration.
I am pleased to inform you that The United States of America has reached a signed agreement with Mexico, Trump said on Twitter.
The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended.
He added: Mexico, in turn, has agreed to take strong measures to stem the tide of migration through Mexico, and to our Southern Border. This is being done to greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States.
Details of the agreement would be released shortly by the US State Department, Trump said.
US border officers apprehended more than 132,000 people crossing from Mexico in May, the highest monthly level since 2006. Trump, who has railed against what he described as an invasion, had threatened to impose levies rising to 25 per cent unless Mexico addressed the problem.
Mexico made concessions during the talks, offering to send 6,000 troops to its southern border with Guatemala, but has said it wants to see a long-term solution that would involve economic development aid.
Mexico had prepared a list of possible retaliatory tariffs targeting products from agricultural and industrial states regarded as Trump's electoral base, a tactic China has also used with an eye toward the Republican president's 2020 re-election bid.
Imposing tariffs on Mexico would have left the United States fighting trade wars with two of its three largest trading partners and would further unnerve financial markets already on edge about a global economic slowdown.