Canada Puts New Tariffs on US Goods
Listen to the story
Canada has announced new retaliatory tariffs on hundreds of goods from the United States. The tariffs will be as high as 50% and will affect products such as steel, fish, cheese and paper.
A tariff is a tax that a government places on goods coming into the country from abroad. When one country adds tariffs, the other country often responds with its own tariffs. This is known as a trade dispute or, in more serious cases, a trade war.
Canada's decision comes after the US president spent the morning criticising the country. He said Canada was the most difficult nation he has to deal with.
The two countries share one of the largest trading relationships in the world. Millions of dollars worth of goods cross the border between them every day.
It is not yet clear how the US will respond to Canada's new tariffs. Higher tariffs usually mean higher prices for buyers, since companies often pass on the extra cost to customers.
Businesses in both countries may be affected by the new tariffs, especially those that rely on cross-border trade, such as farmers, fishers and manufacturers of steel and paper products.
This dispute adds to ongoing tension between the two neighbouring countries. Analysts say further tariffs or negotiations could follow in the coming weeks.
The situation remains developing, and more details may be announced by both governments soon.
Vocabulary7 words
- retaliatory
- done as a response to something bad someone else did
- tariff
- an extra tax on goods from another country
- trade war
- when countries keep adding taxes on each other's goods
- cross-border
- happening between two countries that share a border
- manufacturers
- companies that make products
- analysts
- people who study and explain events
- dispute
- a disagreement between two sides
Quiz
Answer key
1. Canada's new tariffs on US goods 2. Steel, fish, cheese and paper 3. False
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Canada has announced new _____ tariffs on hundreds of goods from the United States.
The tariffs will be as high as _____ and will affect products such as steel, fish, cheese and paper.
A tariff is a tax that a government places on goods coming into the country from _____.
When one country adds tariffs, the other country often responds with its own _____.
Canada's decision comes after the US president spent the morning _____ the country.
He said Canada was the most difficult _____ he has to deal with.
The two countries share one of the largest _____ relationships in the world.
It is not yet clear how the US will _____ to Canada's new tariffs.
Businesses in both countries may be affected, especially those that rely on _____ trade.
This dispute adds to ongoing _____ between the two neighbouring countries.
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