Outgoing Canadian Prime Minister Justin Trudeau says that “nothing is off the table” when it comes to responding to proposed tariffs by U.S.

The government is preparing for the possibility that the incoming U.S. administration will impose high tariffs on Canadian goods, setting the close allies up for a showdown.

President-elect Donald Trump's threatened tariffs could prompt Canada to pursue dollar-to-dollar retaliation or an export tax on oil and gas bound for the U.S.