Trump says 'not enough' progress made in high-stakes U.S.-Mexico talks
FILE PHOTO: U.S. President Trump speaks at the Wounded Warrior Project Soldier Ride event in the East Room of the White House in Washington · Reuters

By Richard Cowan and Alexandra Alper

WASHINGTON (Reuters) - Mexican and U.S. officials are set to resume talks in Washington on Thursday aimed at averting an imposition of tariffs on Mexican goods, with President Donald Trump saying "not enough" progress on ways to curb migration was made when the two sides met on Wednesday.

Frustrated by the lack of progress on a signature issue from his 2016 election campaign, Trump unexpectedly told Mexico last week to take a harder line on illegal immigration or face 5% tariffs on all its exports to the United States starting on Monday, rising to as much as 25% later in the year.

Vice President Mike Pence chaired the meeting on Wednesday afternoon with Secretary of State Mike Pompeo and Mexican Foreign Minister Marcelo Ebrard to make the case that Mexico needed to do more to stop a surge in Central American migrants crossing the border.

With Trump in Europe for D-Day commemoration ceremonies until Friday, a quick resolution had never been anticipated.

"Immigration discussions at the White House with representatives of Mexico have ended for the day. Progress is being made, but not nearly enough!" Trump said in a tweet on Wednesday evening.

Pence had expected to hear "tangible measures" that the Mexican government was prepared to take "immediately," a White House official said ahead of Wednesday's meeting. White House officials were not immediately available for comment afterwards.

Ebrard told a news conference that Wednesday's discussions had focused on migration rather than tariffs. The United States wanted measures that would have a short-term impact but Mexico is aiming for longer-term solutions, he said.

"A number of possibilities were discussed that need to be looked at in more detail to try to find some common ground" on Thursday, Ebrard said.

If the tariffs go ahead, the United States would be in a serious trade dispute with both China and Mexico - two of its three top trading partners. That is a situation that U.S. business groups are keen to avoid.

Mexico also wants to stop a trade war that analysts believe might tip its economy into a recession and Mexican President Andres Manuel Lopez Obrador has said he is optimistic that an agreement will be reached.

But his administration is preparing for a no-deal outcome, too.

An official list of U.S. products that could be subject to retaliatory tariffs if the duties take effect is principally tailored toward products from agricultural and industrial states regarded as Trump's electoral base, a Mexican official said.