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

The impacted categories include steel, aluminum and lumber.

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

The Canada’s government responded with plans to fight back.

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

Market analysts signaled that the tariffs could escalating trade conflict.

Both sides indicated a willingness to negotiate a deal.