Canadian officials are preparing retaliatory measures if the new U.S. administration imposes tariffs on Canadian imports.

Americans will be hit by a "Trump tariffs tax" if the US president-elect increases customs duties on Canadian products, the Canadian foreign minister said Friday, pledging a hard-hitting response in any trade war.

When President-elect Donald Trump recently floated the idea of annexing Canada, a key reason he gave was a claim that the United States was “losing $200 billion a year” to its northern neighbor.