Canada started new taxes on US goods on Tuesday. The taxes cover about C$28 billion ($20 billion) of products. They include steel, furniture, clothes, food, and other goods. Some taxes are as high as 50%. Canada removed fish and lobster from the list after Canadian fishing companies said the taxes could hurt them.

Canada made this move because the United States has taxes on Canadian cars, trucks, steel, wood, and other goods. Canadian Prime Minister Mark Carney said Canada wants a fair and lasting deal. US trade official Jamieson Greer said Canada did not accept the US offer. The two countries stopped talks in late August, and they have not set a date for new talks.

The United States and Canada trade almost $900 billion in goods each year. The new taxes may make clothes, food, and furniture more expensive in Canada. Many Canadian businesses think the trade fight may continue for a long time. Canada lost about 41,000 jobs in August. Carney now wants Canada to sell more goods to other countries and depend less on the United States.