Washington DC - President Donald Trump said Thursday he would hold off a planned tariff hike on Mexican products and instead keep duties at existing levels for 90 days after speaking with his counterpart Claudia Sheinbaum.

"We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time," Trump wrote in a Truth Social post.

The country currently faces a 25% US tariff for goods not entering under a North American trade pact.

"Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many," Trump added.

Donald Trump Trump reveals when he plans to begin using Qatari jet as new Air Force One

Politicians Tim Walz deploys National Guard after serious cyberattack on Minnesota capital

Sheinbaum later said that Mexico would seek a long-term deal with the US to avoid tariffs.

"We avoided the tariff increase... and secured 90 days to build a long-term agreement through dialogue," she said after speaking with Trump.

The US president's dream of a new world trade order still faces some crucial tests ahead of the August 1 deadline, with dozens of economies – including key commercial partners like Canada – yet to secure US tariff deals.

Trump has doubled down on the wide-ranging levies, posting on Truth Social: "Tariffs are making America GREAT & RICH Again."

He insisted in a separate post that the world's biggest economy would have "no chance of survival or success" without protectionist measures.

But question marks linger over the effectiveness of Trump's grand plan – and whether he will really follow through on his most dramatic threats.