US President Donald Trump announced immediate quickly 50% tariffs on chosen Canadian goods.
The designated categories include steel, aluminum and lumber.
The the Treasury said the move aims to shield domestic producers and lower 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.
Economists alerted that the tariffs could broader trade conflict.
The two nations hinted a willingness to negotiate a deal.