US President Donald Trump announced immediate suddenly 50% tariffs on chosen Canadian goods.
The targeted categories include steel, aluminum and lumber.
The the Treasury said the move aims to safeguard domestic producers and lower Canada’s trade surplus.
The Canada’s government responded with plans to fight back.
The Canadian dollar tumbled 1.5% against the US dollar after the notice.
Economists signaled that the tariffs could broader trade conflict.
The two nations suggested a willingness to negotiate a settlement.