China Imposes Tariffs on Canadian Agricultural Products in Retaliation for Trade Disputes

BEIJING: China has announced tariffs on over $2.6 billion worth of Canadian agricultural and food products, escalating tensions in a trade dispute that began with Canada’s tariffs on Chinese-made electric vehicles and steel. The new levies, set to take effect on March 20, mirror Canada’s October decision to impose 100% and 25% import duties on Chinese products.

The Chinese tariffs will target $1 billion worth of Canadian rapeseed oil, oil cakes, and pea imports, with a 25% duty on $1.6 billion worth of Canadian aquatic products and pork. Notably, the tariffs exclude canola, which was previously under investigation by China for anti-dumping. Analysts suggest this omission may signal a possibility for future trade negotiations.

The move follows Canada’s decision in October to counter China’s alleged over-capacity production, in alignment with the U.S. and European Union, who have also imposed tariffs on Chinese electric vehicles. In retaliation, China initiated an anti-dumping investigation into Canadian canola imports, a crucial commodity for Canada, with exports valued at $3.7 billion in 2023.

China’s Ministry of Commerce criticized Canada’s actions, claiming they violated World Trade Organization rules and damaged China’s rights and interests. “Canada’s measures seriously violate World Trade Organization rules and constitute a typical act of protectionism,” the ministry stated.

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Despite the tariffs, some analysts speculate that Beijing is leaving room for future negotiations, possibly looking to reset relations depending on the outcome of Canada’s upcoming national election in October. China’s historical approach, seen in its 2020 tariffs on Australian exports, suggests a potential shift in policy after a leadership change in Ottawa.

China remains Canada’s second-largest trading partner, with bilateral trade valued at $47 billion in 2024. The move underscores the ongoing tensions between the two nations, as Canada continues to align its policies with the U.S. in response to China’s economic practices.