Trade Fight Heats Up as Canada Puts New Taxes on US Goods
Canada fights back against US tariffs with its own taxes on billions of dollars' worth of American products.
Canada has put new taxes, called tariffs, on American goods worth about $20 billion. These tariffs range from 15% to 50% and cover products like steel, dairy, appliances, farm equipment, and electronics. This is Canada's response to the United States putting its own tariffs on Canadian goods. The trade fight between the two countries keeps getting more intense.
The conflict began last month when President Donald Trump announced a 50% tariff on cars and raw materials from Canada. Trump said Canada had been unfairly taking advantage of the US for years. The American tariffs affected items like hockey sticks and cement, hitting about 5.5% of Canadian exports to the US.
Talks between the two countries fell apart in August. Canadian Prime Minister Mark Carney said the conditions set by the US were unacceptable. He was upset that American negotiators tried to block Canada from making trade deals with other countries and made threats against the French language. Carney argued that protecting French in Quebec is about fundamental rights, not a minor issue.
Meanwhile, in Germany, a far-right political party called the AfD won 44% of the vote in a state election in Saxony-Anhalt. This was the strongest far-right result in a German state election since the Nazi era, and it alarmed many people inside and outside the country. Other European leaders are worried this could be part of a growing wave of nationalist politics across the continent.
German Chancellor Friedrich Merz said he would remain in office after the surprising result. He looked shaken when he spoke to reporters, saying Germany has a special responsibility because of its history. It is still unclear if the AfD will be able to take control of the state government, since other parties have refused to cooperate with it for over a decade.
In the United States, groups of lawyers are challenging President Trump's orders about elections. They say his orders would reduce voting rights and take power away from states in running their own elections. Lawyer Stacey Young said the Constitution is clear that the president has no authority over how elections are managed. These groups say they are working together to protect democracy.
In other news, French winemakers expect their worst harvest in 30 years after a record-hot and very dry summer. Scientists believe climate change contributed to deadly floods in Nepal and Tibet, caused when a melting glacier collapsed and set off a landslide. Nepal's government is demanding $20 million from the world's biggest polluters to help pay for the disaster. Leaders there are calling on wealthy, high-polluting nations to accept their share of responsibility.
We know that Germany carries special responsibility because of its history.
Comprehension quiz preview
1. What is the range of tariff rates Canada placed on US goods?
2. What happened to trade talks between Canada and the US in August?
3. What percentage of the vote did the AfD receive in the Saxony-Anhalt state election?