China announces retaliatory tariffs on some Canadian farm, food products
China has recently announced tariffs on Canadian agricultural and food products as a form of retaliation against levies imposed by Ottawa on Chinese-made electric vehicles, steel, and aluminum products. The Ministry of Commerce in China stated that these tariffs will come into effect on March 20, marking a new development in the ongoing trade war that has been fueled by President Donald Trump’s tariff announcements on various countries, including Canada, Mexico, and China.
The tariffs imposed by China include a 100% tariff on Canadian rapeseed oil, oil cakes, and pea imports, as well as a 25% duty on Canadian aquatic products and pork. In response, the Canadian government had previously introduced a 100% tariff on Chinese electric vehicles and a 25% levy on aluminum and steel products. The Chinese Ministry of Commerce condemned these actions, stating that they violate World Trade Organization rules, constitute protectionism, and harm China’s legitimate rights and interests.
Prime Minister Justin Trudeau justified Canada’s tariffs by citing China’s state-directed policy of overcapacity, aligning with the actions taken by the United States and the European Union against Chinese-made electric vehicles. China is a significant trading partner for Canada, ranking as the country’s second-largest trading partner after the United States.
The announcement of tariffs by China has raised concerns within the Canadian agricultural industry, particularly the canola sector. Chris Davison, president and CEO of the Canola Council of Canada, expressed worry over the negative impact these tariffs will have on the industry. He highlighted that both American and Chinese markets combined represent over 75% of Canadian global canola trade.
In response to these challenges, the Canadian government has implemented tariff relief measures to support businesses and workers in the agriculture and food industry. This includes $1 billion in new financing through Farm Credit Canada to address financial barriers faced by the sector.
Davison emphasized the need for immediate financial support from the government to mitigate the impact on the canola industry. He also stressed the importance of meaningful engagement between Ottawa and Canada’s major trading partners to effectively manage risks associated with international markets.
In conclusion, the trade tensions between Canada and China underscore the complexities of global trade relationships. As both countries navigate these challenges, it is essential for governments to engage in constructive dialogue to find mutually beneficial solutions that support economic growth and stability.
