President Claudia Sheinbaum of Mexico said she had an "excellent conversation" with U.S. President-elect Donald Trump on Wednesday, lowering tensions stoked this week by the American leader's threat to impose tariffs.

Mexican President Claudia Sheinbaum confirmed that she spoke with Trump, calling it an “excellent conversation.”

Mexican President Claudia Sheinbaum threatened to retaliate with her own tariffs against the United States, after President-elect Trump suggested he would impose a 25 percent tax on imported goods from Mexico if her country did not stop the flow of drugs across the border. In remarks on Tuesday, Sheinbaum said that drugs were a U.S.…