US President Donald Trump announced immediate suddenly 50% tariffs on particular Canadian goods.
The designated categories include steel, aluminum and lumber.
The Washington’s Treasury department said the move aims to defend 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 declaration.
Economists signaled that the tariffs could broader trade conflict.
Washington and Ottawa suggested a willingness to negotiate a deal.