The United States government says Colombia will no longer be sanctioned with 25 percent tariffs.
The development comes after the South American nation agreed to accept military aircraft carrying deported migrants without restrictions.
On Sunday, Colombian President Gustavo Petro had denied entry to US military planes carrying deported migrants into the country.
Petro said he would “receive our fellow citizens on civilian planes, without treating them like criminals”.
He said migrants must be returned “with dignity and respect”.
In response, US President Donald Trump said emergency tariffs “on all goods” entering the US from Colombia would be implemented “immediately”.
Trump said the 25 percent tariffs would be increased to 50 percent in a week.
However, according to a report by Reuters on Monday, the White House said Colombia has now agreed to accept migrants arriving on US military aircraft “without limitation or delay.”
In a statement cited by the publication, Colombia was said to have committed to maintaining a dialogue to “guarantee the dignity of our citizens”.
The White House hailed the agreement with Colombia as a victory for Trump’s hard-line approach.
“The Government of Colombia has agreed to all of President Trump’s terms, including the unrestricted acceptance of all illegal aliens from Colombia returned from the United States, including on U.S. military aircraft, without limitation or delay,” the White House statement reads.
“Draft orders imposing tariffs and sanctions on Colombia would be held in reserve, and not signed, unless Colombia fails to honor this agreement.
“Today’s events make clear to the world that America is respected again. President Trump expects all other nations of the world to fully cooperate in accepting the deportation of their citizens illegally present in the United States.”
Speaking on agreement in a statement on Sunday night, Luis Gilberto Murillo, Colombia’s foreign minister, said: “We have overcome the impasse with the U.S. government”.
Murillo said the country would “continue to receive Colombians who return as deportees, guaranteeing them decent conditions, as citizens subject to rights”.
“Petro’s presidential plane has been prepared to facilitate the return of the Colombians who would have arrived in the country earlier on the blocked military flights,” he added.
Murillo is expected to travel to Washington for high-level meetings in the coming hours.