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Saturday, June 08, 2019, 16:18
Trump calls off tariffs on Mexico after deal on migration
By Reuters
Saturday, June 08, 2019, 16:18 By Reuters

In this file photo taken on April 4, 2019, an aerial view of cargo trucks lining up to cross to the United States near the US-Mexico border at Otay Mesa crossing port in Tijuana, Baja California state, Mexico. (GUILLERMO ARIAS / AFP)

WASHINGTON/MEXICO CITY - The United States and Mexico reached a deal on Friday to avert a tariff war, with Mexico pledging to take "strong measures" to contain the migration of mostly Central Americans crossing the southern US border, a surge in recent months that has overwhelmed US resources.    

READ MORE: Trump threatens up to 25% Mexico tariffs over migrant surge

US President Donald Trump, who has continually railed against illegal immigration as a candidate and since taking office, had threatened to impose 5% import tariffs on all Mexican goods from Monday if Mexico did not do more to tighten its borders. 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.    

US business groups were generally opposed to the tariffs, warning they would raise costs for companies and lead to higher prices for American consumers. Trump's fellow Republicans were also not keen on the prospect of a two-front trade war 

The agreement announced on Friday followed three days of negotiations in Washington.    

The US-Mexico joint declaration released in Washington said Mexico had agreed to take more migrants seeking asylum in the United States while they await adjudication of their cases and agreed to increase enforcement to curb illegal immigration, including deploying the National Guard to its southern border.   

Mexican Foreign Minister Marcelo Ebrard said in Washington that the National Guard deployment would start on Monday. "I think it's a fair balance," he said.    

The agreement appeared to fall short of a key US demand that Mexico accept a "safe third country" designation that would have forced it to permanently take in most Central American asylum seekers.    

"The Tariffs scheduled to be implemented by the US on Monday, against Mexico, are hereby indefinitely suspended," Trump said in a tweet on Friday evening.    

The two countries will continue discussions, to be completed in 90 days, on further steps, according to the declaration.    

ALSO READ: Trump threatens to shut Mexico border next week

US border officers apprehended more than 132,000 people crossing from Mexico in May, the highest monthly level since 2006. Trump, who has called the surge in migrants an "invasion," had threatened to impose levies rising to 25% unless Mexico addressed the problem.    

Mexico had prepared a list of possible retaliatory tariffs targeting products from agricultural and industrial states regarded as Trump's electoral base. 

US business groups were generally opposed to the tariffs, warning they would raise costs for companies and lead to higher prices for American consumers. Trump's fellow Republicans were also not keen on the prospect of a two-front trade war.    

     


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