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.

Canada’s ambassador to Washington said Monday that Canada is prepared to buy more from the United States, in response to President-elect Donald Trump’s concerns about the US-Canada trade deficit.

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.