In a stunning last-minute decision, President Donald Trump has suspended proposed tariffs on all Mexican imports, averting a potential trade crisis just hours before a midnight deadline. This dramatic turn of events follows intense negotiations between U.S. and Mexican officials aimed at addressing immigration enforcement.

The tariffs, initially announced in May, threatened to escalate from 5% to 25% on Mexican goods unless Mexico took significant action to curb the flow of undocumented migrants into the U.S. The looming tariffs sent shockwaves through global markets, heightening fears of economic fallout, particularly for industries reliant on cross-border trade, such as automotive and agriculture.

As the clock ticked down, a high-stakes U.S. delegation, led by Vice President Mike Pence and Secretary of State Mike Pompeo, engaged in tense discussions with Mexican officials. Late Friday, Trump took to Twitter to declare the tariff threat suspended, citing new commitments from Mexico to enhance border security. Key provisions of the agreement include the deployment of 6,000 members of Mexico’s National Guard to its southern border and the expansion of the controversial “Remain in Mexico” policy for asylum seekers.

While Trump hailed the deal as a victory for his negotiating tactics, reactions were mixed. Supporters praised his approach, while critics accused him of creating a crisis only to take credit for its resolution. The economic implications are significant; had the tariffs been enacted, they would have imposed immediate burdens on American consumers and businesses, potentially raising prices across various sectors.

Markets responded positively to the news, with futures rising as investors expressed cautious optimism. However, questions linger about the deal’s enforceability and its long-term impact on U.S.-Mexico relations. Trump has warned that tariffs could still be reimposed if Mexico fails to uphold its commitments, underscoring the unpredictable nature of his foreign policy approach. As the immigration debate continues and the 2020 presidential election approaches, the use of tariffs as a diplomatic tool remains a contentious issue in American politics.