Tariffs on Canada will hurt American businesses, American families, American farmers, and the overall American economy, said Mary Ng, Canada Minister of International Trade. Ng went on CNBC to speak about the proposed 25% tariffs on Canada,

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.

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.