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Cameron Krauss, senior vice president of legal affairs at the U.S. Lumber Coalition said, "We appreciate today's actions by the Department of Commerce". Commerce Secretary Wilbur Ross said the reason lumber and dairy have erupted as irritants is they're not properly addressed in the old agreement, which he calls obsolete.

"We tried to negotiate a settlement but we were unable", just as previous administrations were also unable to resolve the dispute with Canada, Mr. Ross said, adding that the Trump administration has notified Canada of its decision".

Carr said that the government is weighing all possibilities to fight the US duties, including a challenge through the World Trade Organization or under provisions set out by the North American Free Trade Agreement.

Nova Scotia exports about $90 million worth of softwood lumber a year to the U.S.

Natural Resources Minister Jim Carr echoed Trudeau's sentiment, saying the tariff hurts people in both countries, including American homebuyers, who will now pay more for wood. That, combined with exchange rate differences, made it challenging for US producers to compete, he said.

Trump referenced the crisis on Twitter a day after announcing the tariffs: "Canada has made business for our dairy farmers in Wisconsin and other border states very hard".

Some U.S. milk exports, depending on the fat content, face tariffs as high as 292%, according to Canada's Agriculture Department. Canada also places import tariffs and other measures to protect its dairy industry.

"No, not at all", Trump said.

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Trump confirmed reports that he would tackle unfairly subsidized aluminum imports in the upcoming weeks, and preview additional actions after that.

"This is the main industry in some of our smaller towns, so it has these kind of knock-on effects, where the sawmill goes down and it takes out a good chunk of the tax base for a local town and a lot of the local purchasing power", Nelson says.

Ross said the two ongoing disputes highlight the need to get those negotiations underway quickly.

However, he said the biggest companies in British Columbia will be pushing for a managed deal like 2006. because it benefits them the most.

The U.S. and Canada have been preparing to renegotiate the North American Free Trade Agreement, or NAFTA, which Trump has publicly criticized.

After spending much of his presidential campaign attacking China and Mexico for their trade practices, Trump has shifted his ire toward Canada in the past week.

The Commerce Department said it will conduct a thorough investigation and confirm its position on the lumber tariffs by September 27.

The trade commission will issue a second ruling within several months about whether Canada has also been "dumping" lumber, a trade practice in which companies sell their products overseas at prices lower than they charge in their home market to damage their foreign competitors.