US President Donald Trump announced immediate suddenly 50% tariffs on chosen 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 the federal government responded with plans to counter.
The Canadian dollar fell 1.5% against the US dollar after the declaration.
Economists alerted that the tariffs could expanding trade conflict.
Washington and Ottawa suggested a willingness to negotiate a agreement.