Canadian Justice Department spokesman Ian McLeod said the U.S.is seeking Meng's extradition, but couldn't provide further details about the case because of the publication ban in effect at Meng's request.
China's embassy in Canada protested at the arrest and demanded her release.
Analysts have warned that the arrest of Huawei's Chief Financial Officer Meng Wanzhou may have major repercussions for American tech companies and Washington's ongoing trade war with China, with some experts suggesting that China could retaliate by arresting USA citizens.
The arrest happened at about the same time that President Donald Trump dined with Chinese President Xi Jinping in Buenos Aires last Saturday (Dec 1) to discuss the trade war between the countries. "I don't see the basis on which this could be quashed by Canada", he said.
The arrest in Canada of a top Chinese technology executive for possible extradition to the United States has roiled markets and cast doubt on a recent U.S.
Citing a court-ordered publication ban sought by Meng, Trudeau declined to comment further on the case, which according to a U.S. senator was brought over Huawei's activities in Iran.
The Huawei statement said Meng was detained when she was transferring flights in Canada.
What could be behind it?
The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating USA laws that restrict the sale of American-made technology to Iran.
Meng's arrest has "potentially huge implications" for the trade war and signals the United States government is willing to get tough on Chinese companies that do business with Iran, according to Michael Every, head of Asia-Pacific research at investment bank Rabobank.
Reacting to the arrest, US Senator Ben Sasse told Associated Press that China was aggressively engaged in undermining US national security interests, often "using private sector entities".
Meng Wanzhou is part of the top echelons of Huawei: she is one of the vice-chairs on Huawei's board and the daughter of company founder Ren Zhengfei.
Huawei said in a statement that it had been given little information "about the charges" against Meng.
The handset and telecommunications equipment maker said it complies with all applicable export control and sanctions laws and USA and other regulations.
"The company believes the Canadian and US legal systems will ultimately reach a just conclusion". The Globe and Mail newspaper, citing law enforcement sources, said she is suspected of trying to evade US trade curbs on Iran.
The Chinese embassy in the Canadian capital Ottawa had also taken the floor and appealed to the U.S. "to correct the misstep and restore Mrs. Meng Wanzhou's personal freedom".
Huawei's involvement in 5G has compounded security concerns over the company even further.
Huawei is not listed, but China's second-largest telecom equipment maker, ZTE Corp, sank almost 6 percent in Hong Kong while most of the nearby national bourses lost at least 2 percent.
In 2012, the Australian government banned Huawei from bidding for NBN, Australia's broadband access network, for national security reasons.
Huawei builds telecommunication networks, makes smartphones and delivers cloud services, among many things.
The US has brought a number of legal cases against Chinese technology firms, with accusations such as cyber-security theft and violations of Iran sanctions. The US later replaced the ban with a fine and governance changes.
The Israeli actress Gal Gadot also became the company's USA brand ambassador for its Mate 10 Pro smartphone, an announcement that came after AT&T pulled out of a deal to sell Huawei's phones.
What are the Iran sanctions?
Earlier this year, the United States imposed a seven-year ban on the sale of crucial USA components to Chinese smartphone maker ZTE after finding it had failed to take action against staff who were responsible for violating trade sanctions against Iran and North Korea.