The tariffs were expected to take effect on June 10, and increase to as much as 25 per cent on October 1 if Mexico didn't act to help stem migration.
U.S. Secretary of State Mike Pompeo issued a separate statement thanking his Mexican counterpart, Foreign Minister Marcelo Ebrard.
An employee fuels up a truck with a cargo trailer loaded with goods to import, at the "Fletes Sotelo" moving company, in Ciudad Juarez, Mexico, June 7, 2019.
U.S. and Mexican officials held a third day of talks at the U.S. State Department trying to hash out a deal that would satisfy Trump's demand that Mexico dramatically increase its efforts to crack down on migrants. But the outcome prevents a trade war that experts from both countries had warned could have been an economic catastrophe on both sides of the border. Manufacturers, which are particularly sensitive to trade disputes, added only 3,000 jobs, extending an anemic streak of hiring in the sector. Yet when Germany, as well as Israel, Brazil, Latvia, and other countries, asked for permission to fly the pride flag on official flagpoles, they were reportedly denied. Those measures will include deploying the militarized National Guard security force to its southern border.
In turn, Mexico managed to avoid a proposal it had continually rejected - that it process asylum claims on its own soil before migrants try to reach the United States.
The talks had been focused, in part, on attempting to reach a compromise on changes that would make it harder for migrants who pass through Mexico from other countries to claim asylum in the United States, those monitoring the situation said.
"Thanks to the support of all Mexicans, we were able to avoid tariffs on Mexican products exported to the USA", tweeted Lopez Obrador, who since his election a year ago has tried studiously not to antagonise Trump.
"There is dialogue and an agreement can be reached", Lopez Obrador said. "I'm optimistic we can achieve that".
"Now that that problem is solved, I'm sure we won't be hearing any more about it in the future", Schumer tweeted.
The number of apprehensions and people denied entry along the US-Mexico border has been rising steadily.
US authorities have said more than 100,000 undocumented migrants, mostly from the three Central American countries, have crossed into the United States in recent months.
However, at that time, most of the migrants were adult males who could be deported with more ease than groups of families who are crossing into the USA with their children. However, shortly after the president's announcement, several Republicans applauded the deal, including some who had publicly rebuked Trump for announcing the tariffs.