President Donald Trump announced that the United States and Mexico have agreed to a 90-day extension of their current trade terms, aiming to reach a new agreement during that period.

The decision came after a phone call with Mexican President Claudia Sheinbaum, who confirmed that planned US tariffs—previously set to begin on August 1—have been postponed to allow space for dialogue, according to Xinhua.

Trump highlighted the complexity of negotiating with a neighboring country but said the two sides are building a better understanding. Both leaders described the conversation as positive, with hopes of finalizing a long-term trade deal within the 90-day window.

Talks are expected to continue actively during this period, Xinhua reported.