Proposed US tariffs on Mexico suspended indefinitely

Trucks wait in queue for border customs control at the Otay border crossing in Tijuana

"It was an absolutely insane situation here- the lines were crazy- what's happening is that there's a scramble to get merchandise across the border; you are seeing a lot of companies trying to get their trucks across before Monday, in case the tariff is implemented", Pacheco said.

According to the agreement, Mexico will deploy its National Guard throughout the country to apprehend migrants, "giving priority to its southern border" with Guatemala a statement from the U.S. State Department said.

Last week, Trump threatened to impose a 5 percent tariff on all products imported from Mexico if the country doesn't take appropriate action to reduce or eliminate the number of migrants crossing into the U.S.

Foreign Relations Secretary Marcelo Ebrard, who led the negotiations, said the agreement does not include any quotas. He has been frustrated by a surge through Mexico of Central American migrants seeking asylum in the United States, and has repeatedly blamed migrants who have entered the country through Mexico for crime and illegal drugs.

The U.S. -Mexico Joint Declaration released Friday mentions nothing about agriculture sales as part of the agreement.

Earlier Friday, Trump tweeted there was a "good chance" that the US would reach a deal with Mexico on migration.

The deal did not include a key USA demand that Mexico accept a "safe third country" designation that would have forced it to permanently take in most Central American asylum seekers. And before he signed a potential the executive order, US Customs and Border Protection would have had to submit a notice to the Federal Register to begin the process.

He also warned that Trump retained the authority to impose tariffs if Mexico failed to enforce the new agreement.

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In return, the US promises that those asylum applicants will be "rapidly returned" to Mexico as they await the result of their claims.

"The others have to find a way to stabilise the multilateral rules-based system", he said, "even if the USA want to kill it".

Mexico has scrambled to appease Washington, agreeing Thursday to deploy 6,000 National Guard troops to its southern border, blocking a new migrant caravan and freezing the bank accounts of suspected human traffickers.

United States officials pressed Mexico to change its asylum policy by entering into a "safe third country" agreement with the US.

"From our perspective of where we are now, it is a result of them backtracking on significant commitments", Mnuchin said.

More than 100,000 migrants are now crossing the USA border each month, but not everyone claims asylum and migrants can wait an entire year before making a claim. And Pelosi expressed disappointment about what she said was an expanded policy that "violates the rights of asylum-seekers under USA law and fails to address the root causes of Central American migration". "President Trump ought to stop acting like a showman and start working with Democrats on our serious proposals to address the nation's most pressing needs".

A tax on all Mexican goods, increasing every month up to 25% under Mr Trump's plan, would have had enormous economic implications for both countries. It also came as relief for Republican lawmakers and their allies in the business community, who'd spent the week burning up White House phones and personally nudging the president to back down.

Trump, a Republican, has made stemming illegal immigration a signature issue of his presidency, vowing to build a wall on the border, although Congress has refused to fund that measure.

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