Mexican President Claudia Sheinbaum on Thursday said her government had come to a "good agreement” with the U.S. after Washington announced it will enter a 90-day negotiating period with Mexico over trade as 25% tariff rates stay in place.

U.S. President Donald Trump posted on his Truth Social platform that he had spoken to Sheinbaum over the phone and that the conversation was “very successful in that, more and more, we are getting to know and understand each other.”

The Republican president had threatened tariffs of 30% on goods from Mexico in a July letter, something that Sheinbaum said Mexico gets to stave off for the next three months.

“Our strategy has worked. One of having a cool head, mettle and steadfast defense of our principles," Sheinbaum said later at her daily news briefing.

Trump said as part of the agreement with Mexico that goods imported into the U.S. would continue to face a 25% tariff that he has ostensibly linked to fentanyl trafficking.

He said autos would face a 25% tariff, while copper, aluminum and steel would be taxed at 50% during the negotiating period.

He said Mexico would end its “Non Tariff Trade Barriers,” but he didn’t provide specifics.

Some goods continue to be protected from the tariffs by the 2020 U.S.-Mexico-Canada Agreement, or USMCA, which Trump negotiated during his first term.

But Trump appeared to have soured on that deal, which is up for renegotiation next year. One of his first significant moves as president was to tariff goods from both Mexico and Canada earlier this year.

U.S. Census Bureau figures show that the U.S. ran a $171.5 billion trade imbalance with Mexico last year. That means the U.S. bought more goods from Mexico than it sold to the country.

The imbalance with Mexico has grown in the aftermath of the USMCA as it was only $63.3 billion in 2016, the year before Trump started his first term in office.

Besides addressing fentanyl trafficking, Trump has made it a goal to close the trade gap.