The US and Canada are fighting a trade war.

The US and Canada are neighbours and close partners. Most of Canada's exports go to the US. But this year a trade war began between them.

In August the US introduced high tariffs on some Canadian goods. The new tariff is a full 50 per cent. It applies to dairy products and to alcohol.

Canada responded with its own tariffs. Since 8 September it has been charging tariffs on American goods. These goods are worth about 20 billion dollars. Among them are steel, clothing and electronics.

Then US President Trump went even further. From 29 September the US is banning imports of Canadian alcohol. The ban also applies to some dairy products and to motorcycles.

Canada's prime minister Mark Carney says that Canada will cope. Now Canada is looking for new markets around the world. But he admits that the change will come at a price.