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.

Trudeau blasted Smith, reminding her that the federal government bought the Trans Mountain pipeline, which now has a C$34.5 billion price tag, giving Alberta its only route to export oil from Canada’s Pacific coast.

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.