US President Donald Trump on Friday said there is a "good chance" of reaching a deal with Mexico in order to avoid new tariffs on imports from the Central American country.

However, he warned that tariffs will be imposed as planned from June 10 if the two sides are unable to reach an agreement.

"If we are able to make the deal with Mexico, & there is a good chance that we will, they will begin purchasing Farm & Agricultural products at very high levels, starting immediately. If we are unable to make the deal, Mexico will begin paying Tariffs at the 5% level on Monday!" Trump tweeted.

Amid the threat of tariffs looming, officials of the two countries began the third day of high-stakes discussions on the immigration issue on Friday in a bid to avoid the duties.

The Mexican government has been under intense pressure from the Trump administration to block thousands of migrants from gaining asylum in the US.

Trump has threatened to impose a five per cent tariff on all Mexican goods, which would increase by another five per cent every month and ultimately reach 25 per cent by October.

The US President is planning to declare a national emergency for slapping new tariffs on Mexico over the flow of migrants into his country, according to a draft document.

The new emergency is necessary due to "the failure of the Government of Mexico to take effective action to reduce the mass migration of aliens illegally crossing into the United States through Mexico," the document said.

Trump has repeatedly claimed that there's an influx of drugs and criminals from the US' southern border with Mexico. He has used these claims to justify and press for the construction of a wall along the US-Mexico border.

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