Donald Trump is the leader of the USA. He wants new taxes on goods. A tax on goods is called a tariff. Goods become more expensive in the own country.
Trump plans tariffs for 60 countries. The taxes are between 10 and 12 percent. A reason is bad work in these countries. He calls this forced labor.
Canada faces very high tariffs. The tariffs are 50 percent there. This affects many things. For example wine, hockey sticks and cement.
Some important raw materials are free from taxes. These are oil, gas and minerals. The USA needs these materials for the own economy.
The leader of Canada is Mark Carney. He says the new tariffs are unfair. He says: The USA breaks an important trade contract. This contract is the USMCA.
Experts warn about the results. The tariffs can hurt the economy of the world. Prices in the USA can go up for the people.
