China has announced retaliatory tariffs on Canadian agricultural and food products in response to recent trade measures by Ottawa. The Chinese Ministry of Commerce confirmed the decision, citing Canada’s tariffs on Chinese electric vehicles, steel and aluminum. The tariffs are set to take effect on March 20.
The sanctions include a 100% tariff on Canadian rapeseed oil, oil cakes and peas, as well as a 25% tariff on Canadian aquaculture products and pork, which will significantly impact exports.
In August 2024, Canadian Prime Minister Justin Trudeau imposed a 100% tariff on Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum, accusing Beijing of being responsible for state-led overcapacity.
The measures, implemented in October, were part of a series of actions by the US and the EU, which also imposed tariffs on Chinese-made electric vehicles.
The Chinese Ministry of Commerce condemned Canada’s move as a violation of the World Trade Organization’s rules and described it as “protectionism that inflicts severe damage on China’s legitimate rights and interests”.
China is Canada’s second-largest trading partner after the US and the recent escalation adds to the growing tensions in global trade, as the US, China, Canada and Mexico have imposed tariffs on each other in recent years.
Ongoing trade disputes, fueled by tariffs, trade imbalances and geopolitical conflicts, have led to a complex and volatile trade landscape.
Prior to this, US President Donald Trump had imposed tariffs on Mexico, Canada and China, sparking immediate retaliatory measures. The Trump administration imposed a 25% tariff on Mexican and Canadian imports and increased tariffs on Chinese goods to 20%. In a speech to Congress, Trump justified the measures as a response to trade deficits and the fentanyl trade. In response, Trudeau vowed to impose tariffs on US goods worth over $100 billion within 21 days, while Beijing countered with tariffs of up to 15% on US agricultural exports and expanded restrictions on American companies.