Trump says US, Mexico reach agreement to prevent tariffs

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President Trump has withdrawn his threat of a trade war with Mexico after it agreed "strong measures" to stem the number of migrants entering the USA, and take more of those who had already crossed.

Trump put the number of troops at 6,000, and said in a tweet Saturday, "Mexico will try very hard, and if they do that, this will be a very successful agreement for both the United States and Mexico!"

Trump had planned to impose tariffs on Monday, but has now said tariffs are "indefinitely suspended" following the agreement.

Mexico has also agreed to increase enforcement to curb illegal immigration, including deploying its National Guard throughout the country with a focus on its southern border, and cracking down on human smuggling organizations, according to the declaration.

The Trump administration has demanded Mexico take tough action to halt the flow of hundreds of thousands of Central American migrants towards the United States, insisting it lock down its border with Guatemala to the south and agree to let asylum seekers register their claims inside Mexico.

Bloomberg News reported that three officials also said that increasing Mexico's purchases from the USA wasn't discussed during the talks in Washington that led up to Friday's agreement.

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The US slapped up to 25 percent tariffs on $200 billion in Chinese imports last month, prompting Beijing to levy its own tariffs on a revised target list of $60 billion in American goods.

The immigration deal imposed on Mexico by Donald Trump under the threat of punitive tariffs is a victory for "hostage-taking" over worldwide rules, a former head of the World Trade Organization (WTO) said on Saturday.

Ebrard said Mexico will also allow the U.S.to expand its practice of returning border asylum applicants to Mexico while their cases are processed.

"If we are able to make the deal with Mexico, & there is a good chance that we will, they will begin purchasing Farm & Agricultural products at very high levels, starting immediately", Trump tweeted. Trump has often said unpredictability helps him negotiate.

This image from January shows a migrant from Honduras holding a sign that says "no to the wall" in Reynosa, Mexico.

We are deeply disappointed by the Administration's expansion of its failed Remain-in-Mexico policy, which violates the rights of asylum seekers under USA law and fails to address the root causes of Central American migration.

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USA business groups and some of Trump's Republican allies warned that a trade fight with Mexico would hurt the US economy and lobbied the administration to back down.

Trump has made stopping illegal immigration a priority during his two years in office. But Mexico has already so expanded its deportations of asylum seekers, it is unclear whether it has the resources to do much more.

The move took direct aim at Mexico's economy, which is heavily dependent on trade with the United States.

He said that at any given time, there are 100,000 migrants moving through Mexico to get to the US border. But the State Department's Undersecretary for Management Brian Bulatao has denied all their requests so far this year, saying they can display the flag in other places inside and outside the embassies instead, NBC News reports.

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

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