U.S. President Donald Trump threatened Mexican President Enrique Peña Nieto with a tax on Mexican imports, but said Canada is “no problem” in the North American Free Trade Deal, according to a transcript of a call between the two leaders obtained by The Washington Post.

“Well, Canada is no problem – do not worry about Canada, do not even think about them,” Trump said during the January 27 call. “That is a separate thing and they are fine and we have had a very fair relationship with Canada. It has been much more balanced and much more fair. So we do not have to worry about Canada, we do not even think about them.”

Trump also told the Mexican president he was considering imposing a border tariff of between 10-35 per cent on some imports from the country and warned Peña Nieto of the dangers of retaliating.

“I was going to very strongly say this to Mexico and other countries – that everything is reciprocal. So if Mexico adds a tax, we will add a tax,” Trump said.

Mexico’s president tried to convince Trump that NAFTA benefits all three nations.

“It is an asset to have the three partners of NAFTA,” said Peña Nieto. “We can still build a very fair agreement so that we can increase and strengthen competitiveness between our two nations.”

The discussion between the two leaders soon turned to the Trump’s campaign promise to force Mexico to pay for a controversial border wall. Trump pleaded with the Mexican president to stop stating his country would never pay for the wall.

“You cannot say that to the press,” said Trump. “The press is going to go with that and I cannot live with that. You cannot say that to the press because I cannot negotiate under those circumstances.”