US President Donald Trump announced immediate quickly 50% tariffs on particular Canadian goods.
The impacted categories include steel, aluminum and lumber.
The the Treasury said the move aims to defend domestic producers and shrink Canada’s trade surplus.
The the federal government responded with plans to counter.
The Canadian dollar tumbled 1.5% against the US dollar after the statement.
Market analysts alerted that the tariffs could escalating trade conflict.
Washington and Ottawa hinted a willingness to negotiate a deal.