US President Donald Trump announced immediate quickly 50% tariffs on particular Canadian goods.
The impacted categories include steel, aluminum and lumber.
The the Treasury said the move aims to shield domestic producers and reduce Canada’s trade surplus.
The Ottawa’s government responded with plans to strike back.
The Canadian dollar fell 1.5% against the US dollar after the notice.
Economists signaled that the tariffs could expanding trade conflict.
Washington and Ottawa hinted a willingness to negotiate a settlement.