Mexican President Claudia Sheinbaum warned of retaliatory tariffs on US goods after President-elect Donald Trump said he planned to impose a 25 percent levy on imports from Mexico.

Trump on Monday called on Mexico and Canada to stop illegal immigrants and drugs from entering the United States and said he would impose trade tariffs on those countries on his first day in office.

Sheinbaum read aloud her letter to Trump at a news conference on Tuesday.

She suggested that retaliatory tariffs would put their common businesses at risk and could lead to inflation and employment losses.

Meanwhile, Canadian Prime Minister Justin Trudeau told reporters on Tuesday that he spoke with Trump by phone. He said: "One of the really important things is that we be all pulling together on this."

Trudeau expressed his commitment to working with provincial governments over the tariff issue.