China has announced 100% new retaliatory tariffs on Canadian agricultural and food imports in response to Canada’s imposition of duties on Chinese electric vehicles (EVs), steel, and aluminum products.
The announcement, made on Saturday by the Customs Tariff Commission of the State Council, signals an escalation in trade tensions between the two nations and adds to an already volatile global trade landscape.
According to the official statement, the new Chinese tariffs will take effect on March 20. Among the measures, China will impose an additional 100% tariff on Canadian rapeseed oil, oil cakes, and peas, as well as an extra 25% tariff on pork and aquatic products.
These punitive duties are a direct response to Canada’s October decision to impose restrictions on Chinese imports, including a 100% surtax on all Chinese-manufactured electric vehicles and a 25% tariff on steel and aluminum.
The latest trade actions underscore the growing friction between China and Canada, as both nations continue to respond to what they perceive as unfair trade policies. China’s customs authorities stated that Canada’s measures were imposed unilaterally and without investigation, calling them restrictive actions that have negatively impacted China-Canada economic and trade relations.
“Despite China’s repeated opposition and dissuasion, Canada has taken unilateral restrictive measures on electric vehicles, steel, aluminum, and other products imported from China without investigation, undermining China-Canada economic and trade relations,” the statement read.
China’s decision to introduce these retaliatory tariffs follows an official “anti-discrimination probe” conducted by Chinese authorities. According to the findings, Canada’s restrictive measures have disrupted normal trade operations and harmed the legitimate interests of Chinese enterprises. The statement emphasized that Beijing was acting to protect Chinese businesses from what it views as unjustified foreign trade policies.
The ongoing trade dispute follows Canada’s announcement last August that it would impose tariffs on certain Chinese goods, aligning itself with similar trade measures undertaken by Western allies, including the United States and the European Union.
The dispute is part of a broader global trade war that has seen numerous rounds of tariffs imposed by major economies. The United States and European Union have taken aggressive steps to curb what they consider China’s unfair trade practices, particularly in industries where Chinese companies have received significant government support.
The impact of China’s latest tariffs will likely be felt by Canada’s agricultural and food industries, which rely on exports to China as a key market. China is one of the world’s largest importers of agricultural products, and Canadian farmers could see significant financial repercussions from the increased tariffs on products such as rapeseed oil, pork, and peas.