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Canada will "not back down" within the face of latest US tariffs on metal and aluminium, based on the nation's overseas minister.
Chrystia Freeland spoke as officers unveiled a C$2bn (US$1.5bn; £1.15bn) bundle to help the nation's metal and aluminium industries.
Retaliatory tariffs on C$16.6bn value of US merchandise are on account of come into impact on 1 July.
Ms Freeland mentioned US tariffs left Canada "no choice" however to reply.
Canada's tariffs goal US metal and aluminium merchandise.
It additionally consists of objects resembling yoghurt, ketchup and orange juice, that are made in key political battlegrounds resembling Wisconsin, Pennsylvania and Wisconsin.
The record of merchandise is meant to match "dollar for dollar" the United States tariffs, which got here into impact on 1 June, Ms Freeland mentioned.
"Our approach is we will not escalate but equally we will not back down," she mentioned.
'Too a lot at stake'
The United States and Canada are amongst one another's high commerce companions, exchanging practically US$700bn in items and providers final 12 months.
But commerce relations between the 2 international locations have grown tense, amid disputes over points resembling lumber, dairy and wine.
Dairy wars: Why is Trump threatening Canada over milk?
The two international locations, with Mexico, are additionally locked in negotiations over the North American Free Trade Agreement.
In May, when the United States mentioned it could not lengthen exemptions from the tariffs to Canada and Mexico, it mentioned these talks had been shifting too slowly.
Ms Freeland mentioned the discussions proceed and can warmth up once more after the Mexican election on Sunday. She mentioned she is assured that "common sense" will prevail.
"There's too much at stake," she mentioned.
'A very good first step'
The United States is the highest overseas marketplace for Canada's metal and aluminium, whereas Canada is the vacation spot for greater than half of US metal exports.
In Canada, the metal and aluminium industries make use of greater than 33,500 folks, based on the federal government.
About 6,000 jobs in Canada are in danger as a result of United States tariffs, the CD Howe Institute has estimated.
Ken Neumann, director in Canada for the United Steelworkers union, mentioned the help bundle, which incorporates mortgage help, ought to assist firms, however the help for staff is extra "modest".
The bundle "a good first step that will need to be expanded if the trade dispute continues beyond the short-term", he mentioned.
The United States can be uncovered to 1000's of potential job losses, as larger prices for metal and aluminium harm US companies and set off retaliation from Canada and elsewhere.
In addition to Canada, the European Union and Mexico are amongst those who have introduced tariffs on US items in response.
The Trump administration has mentioned the tariffs are vital to guard the metal and aluminium industries, arguing that their success is significant to America's nationwide safety.
Several international locations, together with Canada, are difficult that rationale with complaints in opposition to the United States to the World Trade Organization (WTO).