China on Saturday announced steep tariffs on Canadian agricultural produce, including food products, in response to Ottawa’s recent trade measures.
The Chinese Ministry of Commerce confirmed the decision, citing Canada’s duties on Chinese electric vehicles (EVs), steel, and aluminium.
The tariffs will take effect on March 20.
The forthcoming sanctions include a 100 per cent tariff on Canadian rapeseed oil, oil cakes, and peas. Additionally, a 25 per cent duty is likely to be imposed on aquatic products and pork, the ministry said.
Earlier in August 2024, Canadian Prime Minister Justin Trudeau introduced a 100 per cent tariff on Chinese EVs and an additional 25 per cent duty on Chinese steel and aluminium, accusing Beijing of state-directed overcapacity.
The measures taken in October also aligned with similar actions by the US and the EU, both of which have imposed tariffs on Chinese-made EVs.
The Chinese Ministry of Commerce condemned Canada’s move as a violation of World Trade Organisation (WTO) rules, describing it as “protectionism that severely harms China’s legitimate rights and interests.”
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China remains Canada’s second-largest trading partner after the US. The latest reciprocal tariffs on Canadian goods have further escalated global trade tensions, with the US, China, Canada, and Mexico imposing rounds of tariffs on each other in recent years.
Trade disputes have persisted, fuelled by tariffs, trade imbalances, and geopolitical conflicts.
Before China’s action, US President Donald Trump imposed sweeping tariffs on its major trading partners—Mexico, Canada, and China—triggering immediate retaliation.
The Trump administration levied a 25 per cent tax on Mexican and Canadian imports and raised tariffs on Chinese goods to 20 per cent.
During his first address to the US Congress, Trump justified the measures, citing trade deficits and fentanyl trafficking.
In response, Trudeau vowed to impose tariffs on over $100 billion of US goods within 21 days, while Beijing countered with duties of up to 15 per cent on US farm exports and expanded restrictions on American companies.
Meanwhile, Trump has also threatened to impose tariffs on Indian goods, following his claim that India was charging 100 per cent import tariffs on US products.
The announcement has raised significant concerns within the Narendra Modi government, which views Trump as an ally and a strategic partner.
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