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Vice President Mike Pence says they are

US reaches signed agreement with Mexico, tariff plan suspended

Mexico has agreed to take more migrants seeking asylum in the United States while they await adjudication of their cases, according to details of an agreement reached late on Friday that led President Donald Trump to call off threatened tariffs.

The tariffs would also jeopardize the ratification of the proposed United States-Mexico-Canada Agreement (USMCA), the rejigged North American trade deal that is Mr. Trump's signature trade deal.

An analysis published by the Brookings Institution last week said that the tariff would have proven costly, both for Mexico and the United States.

Mexican and US officials reportedly met for about 12 hours Friday to reach the agreement, which calls for Mexico to break up trafficking networks and commit to policing its border more strictly.

The tax on all Mexican products, which would increase every month up to 25 percent under Trump's plan, would have had enormous economic implications for both Mexico and the United States.

Mexican Foreign Minister Marcelo Ebrard said in Washington his team had also resisted US requests to send deported Guatemalans to Mexico.

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US border officers detained more than 132,000 people crossing from Mexico in May, the highest level since 2006.

Earlier this week Ebrard said that was a request Mexico could not accept.

Talks had gotten off to a shaky start Wednesday, as the US once again pressed Mexico to step up enforcement on its southern border with Guatemala and to enter into a "safe third country agreement" overhauling its asylum system.

USA officials had laid out steps Mexico could take to prevent the tariffs, but many people had doubts that even those steps would be enough to satisfy Trump on illegal immigration, a signature issue of his presidency and one that he sees as crucial to his 2020 re-election campaign.

Global markets have been roiled by the Trump administration's aggressive use of tariffs, fanning concern about the stability of multilateral institutions that grew up after the second world war.

They would do all that can do to support the president and his reelection in 2020, Portugal said, so Trump can continue to "make America great again".

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But on June 5, Trump sounded more optimistic the tariffs could be avoided, saying Mexico was starting to take his demands seriously. Many members of Trump's Republican Party and business allies had urged him to reconsider - or at least postpone the threatened tariffs as talks continued.

The deployment of 6,000 National Guard troops appears to be the key commitment in what was described as "unprecedented steps" by Mexico to ramp up enforcement, though Interior Secretary Olga Sanchez Cordero said that had already been planned and was not a result of external pressure. Mnuchin warned, however, that Trump retained the authority to impose tariffs if Mexico failed to enforce the new agreement.

"Are we looking at a situation that would put us pre-1994, and is worse than pre-1994?"

"I think they want to do something".

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.

Those measures will include deploying Mexico's militarised National Guard security force to its southern border.

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