The Trump administration indicated Monday that a deal it struck with Mexico in June to limit immigration in exchange for forgoing 5% tariffs on Mexican goods was holding up, signaling that it was unlikely to follow through with the levies.

President Trump threatened in May to place a 5% tariff on all goods imported from Mexico if it did not take steps to limit immigration into the United States. At the time, immigrants from countries like Guatemala had been passing through Mexico in high numbers on their way to the U.S.