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 has drawn up an initial list of C$150 billion ($105 billion) of US-manufactured items that it would hit with tariffs if President-elect Donald Trump decides to levy tariffs against Canadian goods,

Canada’s ambassador to Washington says Canada is prepared to buy more from the United States including its next fleet of submarines to appease President-elect Donald Trump's concerns about the U.S.