Now to the latest on the trade conflict between the US and Canada. The US has imposed 25% tariffs on all Canadian goods, which started March 4th. Canada says it will hit back with counter tariffs on US goods, likely having a significant economic impact on both countries. CGTN's Dan Williams now reports.

Despite the freezing cold weather, Ottawa locals were out in force, enjoying a morning of ice skating along the city's canal. 

But for most people here, and across Canada, the focus is on U.S. tariffs. 

The U.S. President Donald Trump is imposing 25% tariff on all Canadian goods, other than oil, which will have a 10% tariff. He says the U.S. is taking this action, because Canada wasn't doing enough to stop the flow of undocumented migrants and drugs into the U.S.. Canada officials dispute these claims.

DAN WILLIAMS Montreal "Most experts agree the tariffs would likely be devastating for the Canadian economy, potentially plunging the country into a recession. But some economists also suggest it is a time to reflect and focus on developing a more diverse economy."

DAVID SOBERMAN Rotman School of Management, University of Toronto "I think as Canadians, we've maybe been a little too lackadaisical in terms of building a country that is resilient. There are plenty of other countries in the world, in Europe, for example, and in Asia where they don't particularly have the same attitude with regards to putting up tariffs that the Americans seem to have right now. And if we're able to diversify our business, it'll in some ways, insulate us from the sort of craziness that we're dealing with right now."

The tariff threat has, at times, boiled over.

At sports events, both nations have booed each other's national anthems.

For many Canadians, there is disbelief that the tariffs are being imposed.

"My hope is that they come to their senses and remove trade barriers. My message is, look for a better hammer rather than this huge destructive hammer." 

A tranquil scene here in the Canadian capital as the two countries – who are each other's largest trading partners – take steps towards a full-blown trade war.

Canadian businesses are already weighing their options. A recent survey by the global accounting for, KPMG, shows nearly 90 percent of Canadian companies are discussing the possibility of shipping their products elsewhere.

Dan Williams, CGTN, Montreal.