Prime Minister Justin Trudeau and U.S. President Donald Trump held discussions early Monday morning regarding the escalating trade dispute that could have significant economic consequences for businesses and workers on both sides of the border. The two leaders are expected to speak again later in the day as the situation unfolds.

While details of their conversation have not been officially disclosed by the Prime Minister’s Office or the White House, Trump took to social media to criticize Canada for allegedly restricting U.S. banks from operating freely in the country. However, several American financial institutions already conduct business in Canada, offering services such as commercial and investment banking.

In his post, Trump also linked the trade dispute to drug trafficking concerns, claiming that a “DRUG WAR” is taking place, with massive amounts of illegal substances entering the U.S. through both the Canadian and Mexican borders. His remarks come despite American government data showing minimal fentanyl seizures at the northern border, the drug he has repeatedly highlighted as a primary concern.

Despite these ongoing tensions, Trump confirmed that he would speak with Trudeau again at 3 p.m. Meanwhile, the Canadian prime minister is scheduled to meet with the Council on Canada-U.S. Relations later today to discuss the looming trade war and the new tariffs set to take effect on Tuesday.