China has announced a new wave of retaliatory tariffs on specific Canadian farm and food imports. The decision comes in response to Canada’s imposition of duties on Chinese-made electric vehicles, steel, and aluminum products. These new tariffs, which the Customs Tariff Commission of the State Council announced, are set to take effect on March 20.
The tariffs include an additional 100% duty on Canadian rapeseed oil, oil cakes, and peas. Additionally, a 25% tariff will apply to Canadian pork and aquatic products. These measures are part of an escalating trade dispute between China and Canada, which began when Canada imposed similar tariffs on Chinese imports last October. At that time, Canada levied a 100% surtax on Chinese-made electric vehicles and a 25% tariff on steel and aluminum imports.
China’s Response to Canada’s Tariff Measures
“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,” noted the Customs authorities.
This recent development is one of many in the ongoing trade tensions that involve not only China and Canada but also the United States and Mexico. All these countries have imposed tariffs on each other’s goods, heightening trade tensions globally. The dispute is fueled by concerns over China’s subsidies to its industries, which Western governments argue provide an unfair advantage in global markets.
The Customs authorities further highlighted an “anti-discrimination probe, which found out that Canada’s restrictive measures against some Chinese products have disrupted normal trade order and harmed the legitimate rights and interests of Chinese enterprises.”
Canada’s actions in August, which mirrored similar duties by the United States and the European Union, further strained trade relations. These moves have led to multiple rounds of tariff announcements as countries react to protect their industries. The current situation shows no signs of de-escalation as both sides continue to enforce measures that impact bilateral trade.
Author’s Opinion
The ongoing trade tensions between China and Canada highlight the complexity of global trade and the challenge of balancing national interests. As tariffs continue to rise, both countries risk damaging not just bilateral trade but the broader economic landscape. A more cooperative approach, focusing on negotiation and mutual benefits, would likely yield better long-term outcomes for both nations.
Featured image credit: Ontario Canada via Flickr
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