PALM BEACH, United States (AFP) – Justin Trudeau had an “excellent conversation” with Donald Trump at the president-elect’s Florida estate, Canada’s prime minister said Saturday, as the United States’ neighbors scramble to blunt the impact of Trump’s trade threats.

Trudeau flew for a dinner at Mar-a-Lago on Friday, after Trump earlier this week announced plans for import tariffs against Canada and Mexico and rival China.

“It was an excellent conversation,” Trudeau told reporters Saturday morning as he was leaving a hotel in West Palm Beach to catch a flight back to Canada.

Trudeau was the latest high-profile guest of Trump, whose impending second term — which starts in January — is already overshadowing the last few months of President Joe Biden’s administration.

A photograph released by Pennsylvania Senator-elect David McCormick showed Trump and Trudeau side-by-side at table, surrounded by a dozen guests including Howard Lutnick, Donald Trump’s pick for commerce secretary, and Mike Waltz, his choice for national security advisor.

In a social media post on Monday, Trump said he would slap a 25 percent tariff on Mexico and Canada, accusing the two US neighbors of allowing an “invasion” of the United States by illicit drugs, namely fentanyl, and undocumented migrants.

Mexican President Claudia Sheinbaum spoke with Trump by phone on Wednesday, though the two leaders’ accounts of the conversation differed drastically.

Trump claimed that Mexico’s left-wing president had “agreed to stop migration through Mexico, and into the United States, effectively closing our Southern Border.”

Sheinbaum later said she had discussed US-supported anti-migration policies that have long been in place in Mexico.

She said that after that, the talks had no longer revolved around the threat of tariff hikes, downplaying the risk of a trade war.

– Billions in trade –

Biden warned that same day that Trump’s tariff threats could “screw up” Washington’s relationships with Ottawa and Mexico City.

“I think it’s a counterproductive thing to do,” Biden told reporters.

For Canada, the stakes of any new tariffs are high.

More than three-quarters of Canadian exports, or Can$592.7 billion ($423 billion), went to the United States last year, and nearly two million Canadian jobs are dependent on trade.

A Canadian government source told AFP that Canada is considering possible retaliatory tariffs against the United States.

Some analysts have suggested Trump’s tariff threat may be bluster, or an opening salvo in future trade negotiations. But Trudeau rejected those views when he spoke with reporters earlier in Prince Edward Island province.

“Donald Trump, when he makes statements like that, he plans on carrying them out,” Trudeau said. “There’s no question about it.”