US President Donald Trump announced immediate quickly 50% tariffs on chosen Canadian goods.
The impacted categories include steel, aluminum and lumber.
The the Treasury office said the move aims to safeguard domestic producers and shrink Canada’s trade surplus.
The Canada’s government responded with plans to strike back.
The Canadian dollar dropped 1.5% against the US dollar after the statement.
Trade experts signaled that the tariffs could broader trade conflict.
Both sides suggested a willingness to negotiate a settlement.