US President Donald Trump has said he had agreed with Mexican President Claudia Sheinbaum to extend an existing trade deal with Mexico for 90 days and continue talks over that period with the goal of signing a new deal.

"Mexico will continue to pay a 25 percent fentanyl tariff, a 25 percent tariff on cars, and a 50 percent tariff on steel, aluminium, and copper. Additionally, Mexico has agreed to immediately terminate its non-tariff trade barriers, of which there were many," Trump said in a Truth Social post on Thursday.

"We will be talking to Mexico over the next 90 days to sign a trade deal somewhere within the 90-day period of time, or longer," he added.

There will be cooperation on the border as it relates to all aspects of security, including drugs, drug distribution, and irregular immigration into the US, Trump said.

'A very good call'

Sheinbaum said she had a "very good" call with Trump.

The agreement avoids the 30 percent tariffs that had been set to come into force on Friday.

Speaking in a regular press conference after the announcement, Sheinbaum said the pause safeguards the US-Mexico-Canada Agreement (USMCA) and means goods compliant with the pact will continue to be exempt from the 25 percent tariffs Trump imposed earlier this year due to the fentanyl crisis.

Approximately 85 percent of Mexican exports comply with the rules of origin outlined in the USMCA, according to Mexico's Economy Ministry.

Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, said Thursday's agreement brought the countries closer to securing a long-term trade agreement.

"All of this was achieved without a single concession on Mexico's part," said Ebrard. "It's a great achievement."

Both Sheinbaum and Ebrard stressed that the pause means Mexico continues to be one of the countries in the world with the most preferential access to the US market.