Outgoing Canadian Prime Minister Justin Trudeau said Wednesday “nothing is off the table” when it comes to responding to proposed tariffs by U.S. President-elect Donald Trump, but that no single region of the country should bear the full brunt from that response.

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.

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.