China Hits Canada with Retaliatory Tariffs on Farm, Food Imports \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ China has announced retaliatory tariffs on Canadian agricultural products, escalating trade tensions following Canada’s October tariffs on Chinese-made EVs, steel, and aluminum. Effective March 20, China will impose 100% tariffs on Canadian rapeseed oil, oil cakes, and peas, along with 25% tariffs on pork and aquatic products. Beijing claims Canada’s actions have harmed Chinese businesses, while Ottawa and its Western allies argue that China’s subsidies create an unfair trade advantage.
Quick Look
- New Tariffs Announced: China will impose 100% duties on Canadian rapeseed oil, oil cakes, and peas and 25% tariffs on pork and seafood.
- Effective Date: The tariffs take effect March 20, 2025.
- Reason for Retaliation: Canada imposed tariffs on Chinese-made EVs (100%) and steel/aluminum (25%) in October.
- China’s Justification: Beijing claims Canada’s measures disrupt normal trade order and violate Chinese companies’ rights.
- Ongoing Trade Tensions: The move adds to global trade disputes, with the U.S., EU, Canada, and Mexico imposing tariffs on Chinese goods.
Deep Look
China has escalated its trade dispute with Canada by announcing new tariffs on key Canadian agricultural products, including rapeseed oil, oil cakes, peas, pork, and seafood. The move comes in direct retaliation for Canada’s October tariffs on Chinese-made electric vehicles (EVs), steel, and aluminum.
With global trade tensions already heightened between China, the U.S., Canada, and Mexico, this latest move signals a deepening economic rift between Beijing and Ottawa.
Breakdown of China’s New Tariffs on Canada
According to a statement from China’s Customs Tariff Commission, the new duties will take effect on March 20 and include:
- 100% tariffs on Canadian rapeseed oil, oil cakes, and peas.
- 25% tariffs on Canadian pork and seafood (aquatic products).
China justified the tariffs by citing an anti-discrimination probe, which allegedly found that Canada’s trade restrictions disrupted normal commerce and harmed Chinese companies.
“Despite China’s repeated opposition and dissuasion, Canada has taken unilateral restrictive measures on electric vehicles, steel, aluminum, and other products without investigation, undermining China-Canada economic and trade relations.” — Statement from China’s Customs Authorities
What Sparked China’s Retaliatory Tariffs?
The trade dispute began in August 2024, when Canada joined the U.S. and European Union in imposing steep tariffs on Chinese imports.
- Canada announced a 100% tariff on all Chinese-made electric vehicles (EVs), citing unfair subsidies.
- It also levied a 25% tariff on Chinese steel and aluminum imports.
Western governments argue that China’s aggressive subsidies for industries like EVs create an unfair trade advantage and flood global markets with cheap products, hurting domestic manufacturers.
China has repeatedly denied these claims, accusing the West of protectionism and economic coercion.
Why Is China Targeting Canadian Agriculture?
China’s retaliatory tariffs are strategically aimed at Canadian agricultural exports, a sector that heavily relies on Chinese buyers.
- Rapeseed oil and peas are major Canadian exports to China, particularly for food and livestock feed.
- China is one of Canada’s top markets for pork and seafood, making the 25% tariffs a significant blow to farmers.
By targeting key agricultural goods, China is putting economic pressure on Canada’s farming industry, potentially influencing future trade negotiations.
Impact on Canadian Farmers and Trade Relations
The new tariffs could severely impact Canadian farmers, especially those in the grain, oilseed, and meat industries.
- Rapeseed (canola) oil is a $3.5 billion export industry for Canada, and China is a major buyer.
- Pea farmers also depend on Chinese markets, and the 100% tariff could make exports uncompetitive.
- Pork producers already face challenges from previous trade restrictions, and the 25% tariff could further hurt exports.
“These tariffs will have devastating consequences for Canadian farmers and exporters, cutting them off from one of their largest markets.” — Canadian Trade Analyst
Ongoing Trade Tensions Between China and Western Nations
China’s tariff war with Canada is part of a larger global trade battle, as multiple Western governments take a harder stance against Chinese industrial policies.
- The U.S. and EU have already imposed heavy tariffs on Chinese EVs, batteries, and steel, citing unfair subsidies.
- Canada followed suit in October, aligning its trade policies with its Western allies.
- Mexico also recently imposed new tariffs on certain Chinese imports.
These actions are part of a broader effort by Western nations to protect domestic industries from China’s subsidized exports. However, China has responded aggressively, using tariffs on agricultural goods and other imports as leverage.
Will This Escalate Into a Full-Blown Trade War?
With China expanding its retaliatory tariffs, concerns are growing that trade relations with Canada could further deteriorate.
- Canada may now respond with additional tariffs, potentially on Chinese electronics, textiles, or other high-value exports.
- The U.S. could also intervene, given its close trade ties with Canada.
- China’s next steps will depend on how Canada and its allies react in the coming months.
What’s Next for Canada-China Trade Relations?
With no signs of de-escalation, Canada and China are headed for a prolonged trade conflict. The next few months will be critical in determining whether:
- Canada will retaliate with more trade barriers against China.
- China will expand its tariffs to other Canadian exports, such as lumber or dairy.
- Diplomatic negotiations will ease tensions, preventing further damage to bilateral trade.
For now, Canadian farmers and exporters face uncertainty, while China continues to flex its economic leverage in global trade disputes.
China Hits Canada China Hits Canada
