China has announced fresh tariffs on over $2.6 billion worth of Canadian agricultural and food products in retaliation for levies imposed by Canada in October. The new tariffs, set to take effect on March 20, mirror Canada’s duties on Chinese-made electric vehicles, steel, and aluminium. The move adds a new dimension to global trade tensions, already heightened by US President Donald Trump’s tariff threats.
China’s commerce ministry has stated that the new levies include a 100 per cent tariff on over $1 billion worth of Canadian rapeseed oil, oil cakes, and pea imports, as well as a 25 per cent tariff on $1.6 billion worth of aquatic products and pork. However, Beijing has notably excluded canola, one of Canada’s key exports, possibly signalling an openness to further trade negotiations.
Economic implications
The Chinese government has accused Canada of violating World Trade Organization rules and engaging in protectionism. Analysts suggest that Beijing’s response serves as both a warning and strategic manoeuvring, especially as the US considers easing tariffs on Canada and Mexico while maintaining its trade war with China.
Canada’s Prime Minister Justin Trudeau defended the initial tariffs as a measure to counter China’s state-driven overproduction, following the example of the US and European Union. In response, China launched an anti-dumping investigation into Canadian canola imports last year.
Experts believe China may be waiting for Canada’s upcoming elections in October, hoping for a potential policy shift under new leadership. Drawing comparisons to its past trade disputes with Australia, analysts suggest that Beijing might use political changes as an opportunity to reset relations.
(Wih Reuters inputs)