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 said on Sunday that Canada is ready to respond with counter-tariffs against the United States if President-elect Donald Trump follows through on his threat to start a trade war in North America, per Bloomberg.

Outgoing Canadian Prime Minister Justin Trudeau says that “nothing is off the table” when it comes to responding to proposed tariffs by U.S. President-elect Donald Trump, but that no single region of

US President-elect Donald Trump’s vow to impose 25% tariffs on imports from Canada — a threat that has been looming for more than a month — is finally starting to disrupt Canada’s oil industry.