Ottawa's former chief trade negotiator Steve Verheul says Alberta is undermining Canada's attempts to prevent the U.S. from levying damaging tariffs — a measure U.S. President Donald Trump has said could drive Canada into "failed state" status.

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.

Most Read from BloombergTexas HOA Charged With Discrimination for Banning Section 8 RentersHow Sanctuary Cities Are Preparing for Another Showdown With TrumpWhat LA’s Fires Mean for the City’s Housing ShortageDeadly Landslide of Garbage Displays Uganda's Missed OpportunityNY’s Hochul Calls for Law Banning Cell Phone Use in SchoolsPresident Donald Trump signaled plans to impose previously threatened tariffs of as much as 25% on Mexico and Canada by Feb.

Canadian Conservative Party leader Pierre Poilievre has declared that he would “retaliate” against President Donald Trump’s economic threats against his country should he be elected prime minister in the fall of this year.

President Donald Trump has once again stirred the waters of international trade, reiterating his threat to impose tariffs on Canada unless certain conditions are met. In a bold move, Trump suggested that Canada could avoid these tariffs by becoming a state within the United States.