US President Donald Trump announced immediate quickly 50% tariffs on chosen Canadian goods.

The impacted categories include steel, aluminum and lumber.

The Washington’s Treasury department said the move aims to defend domestic producers and shrink Canada’s trade surplus.

The the federal government responded with plans to strike back.

The Canadian dollar fell 1.5% against the US dollar after the declaration.

Economists cautioned that the tariffs could escalating trade conflict.

Both sides indicated a willingness to negotiate a agreement.