US President Donald Trump announced immediate suddenly 50% tariffs on particular Canadian goods.
The targeted categories include steel, aluminum and lumber.
The Washington’s Treasury department said the move aims to shield domestic producers and lower Canada’s trade surplus.
The the federal government responded with plans to strike back.
The Canadian dollar dropped 1.5% against the US dollar after the declaration.
Trade experts alerted that the tariffs could escalating trade conflict.
Washington and Ottawa hinted a willingness to negotiate a agreement.