Global Trade War: China Slaps Fresh Tariffs On Agricultural And Food Products From Canada

China will impose a 100 per cent tariff on Canadian rapeseed oil, pea, and oil cakes imports, while aquatic products and pork imported from Canada will attract a duty of 25 per cent. 

Notably, Canada imposed a 100 per cent and 25 per cent import duty on China-made electric vehicles and steel and aluminium products last year

Source : ABPLIVE AI

China on Saturday took another step forward in the trade war triggered by US President Donald Trump. The Asian country announced tariffs on more than $2.6 billion worth of Canadian agricultural and food products, responding to the levies introduced by Ottawa in October.

The commerce ministry announced the tariffs and informed that these will come into effect on March 20, 2025. Notably, Canada imposed a 100 per cent and 25 per cent import duty on China-made electric vehicles and steel and aluminium products last year, reported Reuters.

However, China has not included canola in these tariffs which is one of Canada’s top exports to the country. This indicated that the Asian nation might still be leaving some room for trade discussions.

The ministry said, “Canada's measures seriously violate World Trade Organization rules, constitute a typical act of protectionism and are discriminatory measures that severely harm China's legitimate rights and interests.”

As part of the fresh tariffs, China will impose a 100 per cent tariff on over $1 billion worth of Canadian rapeseed oil, pea, and oil cakes imports, while aquatic products and pork imported from Canada will attract a duty of 25 per cent. 

China's Warning To Canada

The timing of the decision is very tricky. Citing analysts, the report said this move from the Chinese government should ring warning bells. Now, the Trump administration has signalled that it could cut down the 25 per cent import levies on Canada and Mexico if they agree to impose the extra 20 per cent duty on Chinese goods, following in the US’ example. 

Dan Wang, China director at Eurasia Group in Singapore, explained, “By striking now, China reminds Canada of the cost of aligning too closely with American trade policy. China's delayed response (to Ottawa's October tariffs) likely reflects both capacity constraints and strategic signalling. The commerce ministry is stretched thin, juggling trade disputes with the U.S. and European Union. Canada, a lower priority, had to wait its turn.”

Notably, China stands as Canada’s second-largest trading ally. According to Chinese customs data, Canada exports $47 billion worth of goods to the country in 2024.