China has announced new tariffs on Canadian agricultural and food products, escalating tensions following Ottawa’s tariffs on Chinese electric vehicles, steel, and aluminum. The move, revealed by China’s Ministry of Commerce on Saturday, is set to take effect from March 20.
Key Tariffs Imposed by China:
- 100% tariff on Canadian rapeseed oil, oil cakes, and pea imports
- 25% tariff on Canadian aquatic products and pork
Reason Behind the Tariffs:
- China’s decision comes in response to Canada’s 100% tariff on Chinese EVs and 25% levies on Chinese aluminum and steel products, introduced in October 2024.
- The Chinese Commerce Ministry accused Canada of violating WTO rules and implementing discriminatory protectionist measures that harm China’s economic interests.
Background of Canada’s Tariffs:
- Canadian Prime Minister Justin Trudeau defended the tariffs, aligning with the U.S. and EU’s stance against China’s “state-directed policy of overcapacity” in EV production and industrial goods.
- The U.S. and EU had previously imposed similar import levies on Chinese EVs, citing unfair subsidies and market distortions.
Trade Impact:
- China is Canada’s second-largest trading partner, but trade relations have been increasingly strained in recent years.
- The tariffs could significantly affect Canadian agricultural exports, especially in the canola, pork, and seafood sectors, which heavily rely on the Chinese market.
This escalation adds a new front to ongoing global trade disputes, initially sparked by U.S. tariffs under former President Donald Trump and continuing under current trade protectionist policies worldwide.
