US President Donald Trump announced immediate quickly 50% tariffs on particular Canadian goods.
The impacted categories include steel, aluminum and lumber.
The the Treasury office said the move aims to defend domestic producers and reduce 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 signaled that the tariffs could expanding trade conflict.
Both sides suggested a willingness to negotiate a agreement.