US President Donald Trump announced immediate suddenly 50% tariffs on specific Canadian goods.

The designated categories include steel, aluminum and lumber.

The the Treasury said the move aims to safeguard domestic producers and reduce 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 declaration.

Economists signaled that the tariffs could expanding trade conflict.

Both sides suggested a willingness to negotiate a agreement.