A full-blown trade war between the U.S. and Canada could lead to a recession in both countries, economist says.

A government official says Canada is already examining possible retaliatory tariffs on certain items from the United States should President-elect Donald Trump follow through on his threat to impose sweeping tariffs on Canadian products.

If Canada seeks to retaliate over U.S. president-elect Donald Trump's tariff threat, the government should hit the U.S. where it hurt would both economically and politically, some trade experts suggest.