Washington—The United States and Mexico reached an 11th-hour deal late Friday to crack down on migration from Central America, with President Donald Trump relenting on threats to slap potentially devastating tariffs on the neighboring country.
With Trump ready to impose five percent tariffs on all Mexican goods starting Monday, senior officials hammered out an agreement after three days of intense negotiations at the State Department.
Under the deal, Mexico acknowledged and agreed to expand its policy of taking back migrants from violence-riven Guatemala, Honduras and El Salvador as the United States processes their asylum claims.
In turn, Mexico managed to avoid a proposal it had continually rejected – that it process asylum claims on its own soil before migrants try to reach the United States.
“I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the US on Monday, against Mexico, are hereby indefinitely suspended,” Trump wrote on Twitter shortly after returning from a trip to Europe.
“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.”
Mexican President Andres Manuel Lopez Obrador, who had planned to head Saturday to the border city of Tijuana to show solidarity ahead of the tariffs, said that his trip would instead be to “celebrate.”
“Thanks to the support of all Mexicans, we were able to avoid tariffs on Mexican products exported to the United States,” tweeted Lopez Obrador, who since his election last year has tried studiously not to antagonize Trump.
Trump, who ran for president pushing a tough line on immigration that included denouncing undocumented Mexicans as rapists, had vowed to raise tariffs as high as 25 percent unless Mexico—which exports $350 billion in goods each year to the United States—takes further action against migrants.
The tariffs would have clobbered Mexico’s economy, which is integrated with the United States and Canada under the North American Free Trade Agreement, with experts warning of a recession and Fitch rating service already downgrading Mexico’s credit rating.
But the tariffs also drew unusually strong opposition from Trump’s fellow Republicans, especially lawmakers from farm states who worried about losing their second largest international market.
Mexican Foreign Minister Marcelo Ebrard, who quickly flew to Washington and had stayed ever since following Trump’s tariff threat by Twitter on May 30, said he believed the two sides had found a compromise.
“I think it was a fair balance, because they have more drastic measures and proposals,” he told reporters as he left the State Department following a final day of talks that lasted 12 hours.
“We have reached some middle point,” he said.
Treasury Secretary Steven Mnuchin hailed the deal between the US and Mexico as “very, very significant.”
Speaking to reporters Saturday on the sidelines of the G20 meeting of finance ministers and central bank governors, Mnuchin said: “We couldn’t be more pleased with the agreement that we reached. It is very, very significant and we very much appreciate the commitments that Mexico has made to help us on those important immigration issues.”
