The country is working closely with the European Union and Mexico, according to Foreign Minister Chrystia Freeland.

“We will not escalate, and we will not back down,” Freeland said.

Canada’s announcement is part of larger fallout from U.S. President Donald Trump’s announcements on trade. The U.S. has levied tariffs of 25 percent on steel and 10 percent on aluminum on Canada, the EU and other nations. As a result, some of the U.S.’ biggest trading partners have retaliated with counter-tariffs.