Mexico's President Claudia Sheinbaum said she and U.S. President-elect Donald Trump had agreed to maintain a good relationship in a friendly phone call that appeared to ease tensions between the top trading partners amid tariff threats.

President Claudia Sheinbaum Pardo said tariffs could cause more inflation and result in job losses for the U.S. and Mexico.

President Claudia Sheinbaum responded to President-elect Trump’s threat to impose high tariffs, saying such a move would inflict damage on both countries.