U.S. President Donald Trump announced on social media Thursday that he and Mexican President Claudia Sheinbaum have agreed to extend their current trade agreement for 90 days.
The decision delays Trump's July 12 threat to impose 30 percent across-the-board tariffs on Mexican goods, which were set to take effect on Aug 1.
In his post, Trump described their phone conversation as "very successful," noting the two leaders were "getting to know and understand each other" better.
The agreement maintains existing tariffs, 25 percent on cars and fentanyl, and 50 percent on steel, aluminum and copper imports from Mexico.
The U.S. president also said that Mexico agreed to "immediately terminate its Non Tariff Trade Barriers, of which there were many."
Sheinbaum confirmed the breakthrough on social media, writing, "We avoided the tariff increase scheduled for tomorrow and secured 90 days to build a long-term agreement through dialogue."
Trump also stressed the unique "complexities" of U.S.-Mexico relations due to shared border issues, while announcing plans to negotiate a comprehensive trade deal within the 90-day window.
Both leaders committed to continued collaboration on border security matters including drug trafficking and immigration enforcement.
On July 14, the U.S. Department of Commerce announced termination of the 2019 Tomato Suspension Agreement, which triggered a separate 17.09 percent anti-dumping duty on most fresh Mexican tomatoes.
Trump announces 90-day extension of US-Mexico tariff agreement
Trump announces 90-day extension of US-Mexico tariff agreement
