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.

U.S. president-elect Donald Trump's pledge to hit Canada and Mexico with 25 per cent across-the-board tariffs has sent shockwaves through America's closest neighbours — but it's likely just a first step in his plan to rattle a critical trilateral trade pact.

After nearly a decade in power, Canadian Prime Minister Justin Trudeau finally bowed to a chorus of criticism that had become too loud to ignore, announcing his resignation on Monday. Among the loudest critics was one of his most loyal and longest-serving deputies.

Imposing tariffs on Canadian exports would hurt the Canadian economy, but also the American economy, by causing a new inflationary surge and increasing costs for American companies and the

But we must not give up on the long shared history of productive outcomes between the two countries, even during moments of civil disagreement

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.

His renegotiation of the North American trade pact was aimed at rebalancing trade with Canada and Mexico, but U.S. trade deficits continued to rise even after he inked the agreement in 2018.

Trump continues to erroneously cast the U.S. trade ... % tariff free. And that tariff level is as a result of the USMCA,” Hillman said, referring to the United States-Mexico-Canada Agreement.

The Americas, China and Europe have developed playbooks to react to the aggressive tariffs that U.S. President-elect Donald Trump is threatening. Retaliation is inevitable.

Saltillo, Mexico - Over the years, a “mini-Detroit” blossomed in these desert highlands 200 miles south of the Texas border. General Motors, Stellantis and Daimler Trucks set up sprawling plants to churn out vehicles for export. Around them, a constellation of factories sprung up, with names like Detroit Diesel and Liberty Steel.

The experienced hand who can fix the economy. The tough negotiator who can take on a Donald Trump White House. The millennial long-hauler who can rebuild the party.