US President Donald Trump announced immediate suddenly 50% tariffs on specific Canadian goods.
The targeted 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 the federal government responded with plans to counter.
The Canadian dollar dropped 1.5% against the US dollar after the statement.
Market analysts signaled that the tariffs could expanding trade conflict.
Both sides hinted a willingness to negotiate a agreement.