US President Donald Trump announced immediate abruptly 50% tariffs on particular Canadian goods.
The targeted categories include steel, aluminum and lumber.
The the Treasury said the move aims to safeguard domestic producers and reduce Canada’s trade surplus.
The Ottawa’s government responded with plans to strike back.
The Canadian dollar dropped 1.5% against the US dollar after the statement.
Trade experts alerted that the tariffs could broader trade conflict.
Both sides indicated a willingness to negotiate a agreement.