What to know about Canada's escalating trade war with the U.S.

Canada and the U.S. have a big problem with trade. This problem is called a trade war. On Tuesday, Canada takes action against the U.S. Canada puts extra money, called tariffs, on many products from the U.S. These products are worth about $20 billion. This means U.S. products become more expensive in Canada.

This action is a way for Canada to strike back. The U.S. put tariffs on Canadian products before. So, Canada now puts tariffs on U.S. goods like steel, aluminum, and other things. This makes the trade problem bigger.

The trade war is not good for anyone. It makes things more costly for people in Canada and the U.S. This problem does not stay only in Canada and the U.S. It can affect many other countries around the world. Everyone hopes the two countries can stop the trade war soon.