President-elect Donald Trump's threatened tariffs could prompt Canada to pursue dollar-to-dollar retaliation or an export tax on oil and gas bound for the U.S.

On Friday, Prime Minister Justin Trudeau met with his newly created Canada-U.S. relations council in Toronto, which he assembled to support the federal government as it deals with Trump's tariff threat. The 18-member council includes representatives from the auto sector, unions, industry and agriculture.

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.