US President Donald Trump announced immediate quickly 50% tariffs on specific Canadian goods.
The targeted categories include steel, aluminum and lumber.
The the Treasury office said the move aims to safeguard domestic producers and shrink Canada’s trade surplus.
The Ottawa’s government responded with plans to fight back.
The Canadian dollar tumbled 1.5% against the US dollar after the declaration.
Economists alerted that the tariffs could expanding trade conflict.
Both sides suggested a willingness to negotiate a deal.