Canada is fighting back against the US with a 25% tax on American cars.
This tax will apply to all cars that don’t follow the North American trade deal.
It won’t affect car parts or cars made in Mexico.
Canadian Prime Minister Mark Carney said, “The US president’s actions have a ripple effect here in Canada and around the world. They’re unfair and misguided.”
Canada’s move comes after US President Donald Trump announced a 10% tax on all imported goods.
He also plans to tax countries with which the US has a large trade deficit.
The US has already started taxing cars made outside the country at 25%.
A car factory in Windsor, Ontario, will close for two weeks because of this tax.
Over 3,600 workers will be affected.
Canada has been hit by US taxes before.
The US has taxed some Canadian goods at 25%, and also taxes steel, aluminum, and cars.
Source: the guardian
