Chrystia Freeland, the former finance minister who is running to replace Justin Trudeau as Canada's prime minister, says her country needs to release a "retaliation list" of goods the country would target if U.

Canada is the top export destination for 36 US states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day.

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.