Ottawa, Canada - Canadian Prime Minister Justin Trudeau said Tuesday he had a "good" conversation with Donald Trump after the president-elect's shocking tariff announcement targeting the US' northern neighbor.

"We talked about how the intense and effective connections between our two countries flow back and forth," Trudeau told reporters in Ottawa.

"We talked about some of the challenges that we can work on together," he added. "It was a good call."

The call came after Trump warned he would impose new tariffs of 25% on goods from Canada and Mexico, while also unveiling new levies on products coming into the US from China.

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The US, Mexico, and Canada are tied to a three-decade-old free trade agreement, now called the USMCA, that was renegotiated under Trump after he complained that US businesses, especially automakers, were losing out.

On Tuesday morning, a senior government source told AFP that Trump and Trudeau had a "productive and constructive conversation focused on trade and border security" and pledged "to stay in touch."

Trudeau is scheduled on Wednesday to hold a meeting with Canada's provincial premiers, many of whom expressed alarm at the possible trade impacts, to discuss the Trump salvo.

In a country that relies on trade with the US, with some 75% of its exports US-bound, the news created shockwaves.

Quebec Premier Francois Legault said the announcement represented "an enormous risk" to the Canadian economy.

His counterpart in British Columbia, David Eby, said "Ottawa must respond firmly."