Reuters reported on Tuesday, citing a Canadian source directly familiar with the situation, that US President-elect Donald “Trump and Canada’s  Prime Minister (PM) Justin Trudeau spoke on Monday night about trade and border security.”

The source said Trump and PM Trudeau had a “good discussion” and that the “two men agreed to stay in touch.”

Meanwhile, the Canadian Deputy PM noted that “Canada places the highest priority on border security and the integrity of shared border with the US.”

“Canada-US relationship today is balanced and mutually beneficial, particularly for American workers,” the Deputy PM added.

Reuters said that the Canadian Deputy PM’s statement did not mention Trump’s tariff threat.

Market reaction

USD/CAD is paring back gains following these comments, still trading 1% higher on the day at around 1.4125.

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