Trump calls off Mexico tariffs after reaching migration deal

Muscat: US President Donald Trump announced that he was suspending his decision to impose tariffs on imports from Mexico after a deal to reduce illegal immigration was reached between the two countries.

Trump wrote on Twitter: "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. 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 will be released shortly by the State Department. Thank you!"

The news will come as a relief to companies on both sides of the border.

Trump had initially threatened to impose a 5 percent tariff on all goods imported from Mexico if the country did not agree to stop the flow of illegal immigrants entering the US.

Mexico's President Andres Manuel Lopez Obrador also took to Twitter to thank Mexicans for their support.

"Thanks to the support of all Mexicans, it was possible to avoid the imposition of tariffs on Mexican products exported to the United States," he wrote, adding that a celebration would be held in Tijuana.

In a joint declaration, the two countries stated that Mexico would take a number of measures to reduce illegal immigration, including the deployment of its National Guard throughout the country with priority given to its southern border.

The US would "immediately expand the implementation of the existing Migrant Protection Protocols across its entire Southern Border. This means that those crossing the US Southern Border to seek asylum will be rapidly returned to Mexico where they may await the adjudication of their asylum claims," the declaration added.

"In response, Mexico will authorize the entrance of all of those individuals for humanitarian reasons, in compliance with its international obligations, while they await the adjudication of their asylum claims. Mexico will also offer jobs, healthcare and education according to its principles."

Additionally, the two countries reiterated their support for a regional initiative to boost the economies of Central American countries.