President TrumpDonald John TrumpKey figure that Mueller report linked to Russia was a State Department intel source De Blasio: There’s too much talk about impeachment among Democrats De Blasio: There’s too much talk about impeachment among Democrats MORE said Friday evening he would drop plans to impose sweeping tariffs on Mexico after the United States’ southern neighbor agreed to take new steps to crack down on illegal migration.

The decision—reached three days before the tariffs were set to take effect—averts a possible showdown with Congress and could soothe jittery financial markets that have been rattled by the proposed duties, which lawmakers and experts warned could damage the U.S. economy.

“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 U.S. on Monday, against Mexico, are hereby indefinitely suspended,” Trump tweeted.

Trump said the Mexican government would “take strong measures to stem the tide of Migration through Mexico, and to our Southern Border.”

Mexican Foreign Minister Marcelo Ebrard confirmed on Twitter that a deal had been reached to avert the tariffs.

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As part of the deal reached Friday, Mexico has agreed to deploy its national guard throughout the country to help apprehend migrants and fight gangs, boost intelligence sharing with the U.S. and allow the U.S. to deport migrants seeking asylum to Mexico to await adjudication, the State Department said.

The U.S. and Mexico will continue migration talks and if the flow of migrants to the U.S. does not subside within 90 days, “they will take further actions,” according to an outline of the plan released by the State Department.

The decision marks a complete change from late last week, when Trump threatened to impose tariffs on all Mexican goods out of frustration with the rising number of migrants crossing the U.S. southern border.

It is also a victory for the government of Mexican President Andrés Manuel López Obrador, whose representatives spent all week in Washington trying to persuade the Trump administration to drop the tariff plan.

López Obrador tweeted following Trump’s announcement that the delay was achieved “thanks to the support of all Mexicans.” He added he would still hold a rally on Saturday in Tijuana in protest of Trump’s tariff threat, which he planned before Friday’s announcement.

Trump had said earlier Friday that there was a “good chance” the U.S. and Mexico could reach an agreement to avert the tariffs, but warned that they would go into effect as planned on Monday if both sides could not reach a deal.

The president had planned to impose 5 percent tariffs on all Mexican imports, which would increase to 25 percent by October if the administration deemed that the Mexican government was not doing enough to curb illegal migration and combat criminal gangs.

Secretary of State Mike PompeoMichael (Mike) Richard PompeoUS, Mexico discussing new immigration deal to avert tariffs US, Mexico discussing new immigration deal to avert tariffs Iraqi sheikh spent 26 nights at Trump’s DC hotel: Washington Post MORE issued a statement Friday thanking Ebrard “for his hard work to negotiate a set of joint obligations that benefit both the United States and Mexico.”

“The United States looks forward to working alongside Mexico to fulfill these commitments so that we can stem the tide of illegal migration across our southern border and to make our border strong and secure,” Pompeo said.

Updated: 9:19 p.m.

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