Ottawa is ready to retaliate if U.S. president-elect Donald Trump slaps Canada with devastating tariffs, Prime Minister Justin Trudeau promised Friday — and his ministers say Republicans in Washington don't fully understand the likely impact of the duties on both countries' economies.

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.

Outgoing Canadian Prime Minister Justin Trudeau has announced the formation of a Canada-U.S. relations council to support the federal government as it deals with incoming U.S. President Donald Trump’s