Canada is preparing billions of dollars in retaliatory import taxes on American products if President-elect Donald Trump follows through on his tariff threats. Outgoing Prime Minister Justin Trudeau said the potential retaliation would be spread across the whole of the U.

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.

Canadian Prime Minister Justin Trudeau has suggested that President-elect Donald Trump’s remarks about Canada becoming America’s “51st state” is distracting the public from the harm that steep tariffs would have on U.