Later Tuesday, Trump and Trudeau discussed the trade issues in a "very amicable" phone call, the White House said.
According to a new report from Reuters, "Trudeau was due to call Trump later on Tuesday after he speaks to the premiers of Canada's 10 provinces".
President Donald Trump imposed the first tariffs of his administration, up to 24.1 percent aimed at Canada's lumber industry, the Commerce Department announced.
"The government of Canada disagrees strongly with the U.S. Department of Commerce's decision to impose an unfair and punitive duty", Canada's Minister of Foreign Affairs, Chrystia Freeland, and Natural Resources Minister Jim Carr said in a joint statement.
The NDP pointed to donations to the B.C. Liberals from Weyerhauser, a member of the USA lumber industry coalition pushing for import duties.
Premier Brad Wall says while the incoming tariffs on Canadian lumber exports to the US, which will range from three to 24 per cent, are serious - they're not unexpected.
But the head of Quebec's dairy farmers' federation, Bruno Letendre, told Radio Canada that the Canadian government played no role in the case of a concentrated milk company in the U.S. border state of Wisconsin losing an export contract to Canada. The US president reiterated the pledge in a Twitter message earlier on Tuesday.
President Donald Trump accused Canada of hurting milk producers in Wisconsin and other U.S. states, warning that he will not continue to put up with such behaviour.
Ed Regan, Resource Manager at RY Timber, explained that Canada subsidizes its timber industry and that US producers pay as much as 20 times more per standing tree.
Canada dumping lumber into the US has been a longstanding dispute.
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The company, which employs about 100 people, has lowered its inventories and shifted more of its business away from the US market - towards East Asia and the Middle East. Saskatchewan will export 225 million board feet of lumber to the USA this year, which is valued at approximately $114 million.
Robin Wilber is president of Elmsdale Lumber, a Nova Scotia company that ships softwood to the United States.
Dawson, a former economic adviser to the USA embassy in Ottawa, says she suspects "the current drama will be forgotten" after US and Canadian negotiators get down to working out compromises.
Members of the agricultural industry believe Canada is violating the terms of the North American Free Trade Agreement with policies that thwart USA farmers from selling dairy goods there.
The dispute over softwood lumber between the two countries spans decades.
The heated rhetoric came amid fresh attacks from the USA president against Canada's dairy industry, and just two months after the two leaders held a warm meeting where Trump said the bilateral trade relationship only needed "tweaking". Just ask American dairy farmers.
"That European deal is going to bring untold billions to Canada and create...tens of thousands of new jobs", Mulroney said.
"The US has a $400 million dairy surplus with Canada, so it's not Canada that's the challenge here", Trudeau said last week in an interview with Bloomberg.
"We have had tremendous support from both the federal government and the provincial government on this file", Yankovich said.
Some believe another wave of bad news could come in the form of a separate anti-dumping duty on softwood, the renegotiation of the North American Free Trade Agreement or a proposed border tax on all imported goods.
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