US President Donald Trump announced immediate suddenly 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 reduce Canada’s trade surplus.

The the federal government responded with plans to fight back.

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

Economists cautioned that the tariffs could expanding trade conflict.

Washington and Ottawa hinted a willingness to negotiate a settlement.