Trump starts a trade fight with Canada and Mexico

5 days ago

Trump starts a trade fight with Canada and Mexico

The leader of the United States, Donald Trump, has made a big problem by saying he will make taxes on things that come from Canada and Mexico. Canada has said it will do the same thing back. Mexico has also said it will fight back, but the United States has stopped the taxes on Mexico for one month. These three countries work very closely together and a lot of things they make cross the borders every day.

Trump wants to help American workers, but many people who study money say the taxes could make things cost more for people in the United States. This is because the companies in the United States that bring in the goods might make customers pay more, or they might bring in fewer things, which means there will be less to buy. Cars, for example, might cost more because the parts come from all three countries and the taxes on these parts might make the final price higher.

Some drinks from Mexico, like Modelo and Corona beer, might also cost more if the companies decide to make customers pay the higher taxes. The same is true for wood from Canada, which is used to build houses. If the taxes make the wood cost more, then building a house will cost more too. Oil from Canada is also important because the United States needs it for their cars and machines. If Canada sends less oil because of the taxes, then gas might cost more. Lastly, avocados from Mexico might get more expensive, which would make dishes like guacamole cost more too.