China has introduced new tariffs on Canadian agricultural and food products. This move responds to Canada’s recent import levies on Chinese electric vehicles (EVs) and steel and aluminium goods.
The new tariffs take effect on 20 March, escalating trade tensions between the two nations. This dispute is part of a broader global trade conflict. It follows tariffs imposed by former US President Donald Trump on Canada, Mexico, and China.
China’s tariffs on Canadian goods
The Chinese Ministry of Commerce announced a 100% tariff on Canadian rapeseed oil, oil cakes, and peas. In addition, a 25% duty will apply to Canadian aquatic products and pork.
China introduced these measures after Canada imposed import levies on Chinese goods in October 2024.
China’s response to Canadian tariffs
China’s Ministry of Commerce criticised Canada’s tariffs on Chinese EVs, steel, and aluminium. The ministry argued that these measures violate World Trade Organization (WTO) rules. It called them “a typical act of protectionism” that harms China’s rights and interests.
China is Canada’s second-largest trading partner, after the United States.
Why Canada imposed tariffs
Canadian Prime Minister Justin Trudeau defended the tariffs. He said they counter China’s “intentional state-directed policy of over-capacity.”
The European Union and the United States also imposed tariffs on Chinese-made EVs. Canada’s decision aligns with these trade policies.
