President Trump pulled back Thursday from his threat to immediately close the southern U.S. border, saying instead he’ll put tariffs on Mexico’s auto industry unless Mexican officials do more to stop the flow of migrants and drugs to the U.S. Trump said he was giving Mexico a “one-year warning” to comply with his demand.

President Donald Trump: “If the drugs don’t stop—Mexico can stop them if they want—we’re going to tariff the cars. The cars are very big. And if that doesn’t work, we’re going to close the border.”

The president backed away from a threat to close the U.S.’s southern border this week amid widespread warnings over severe economic consequences.