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.

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.