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China has announced its intention to impose tariffs on Canadian agricultural and food products as a countermeasure to Ottawa’s levies on Chinese electric vehicles. This development adds another layer of uncertainty to the Canadian economic landscape.
The Chinese commerce ministry revealed on Saturday that it plans to implement 100% tariffs on Canadian rapeseed oil and pea imports, along with a 25% levy on pork and certain seafood products. These actions are in response to Canada’s “discriminatory” tariffs implemented in August, which slapped 100% tariffs on electric vehicles and 25% on steel and aluminum—mirroring similar moves by the U.S.
In retaliation, Beijing has lodged a complaint with the World Trade Organization and commenced an anti-dumping investigation into Canadian rapeseed imports.
These tariffs, set to begin on March 20, compound the existing trade uncertainty facing Canada’s export sectors, especially with past threats from the Trump administration to enact blanket tariffs on imports from neighboring countries.
Although earlier this week President Trump retracted his threat to impose a broad 25% tariff on imports from Mexico and Canada, he left the door open for potential action in April.
For Canada, China is a crucial market for rapeseed—commonly known as canola. In fact, China ranks as the second largest market for Canadian canola products, right behind the U.S., with purchases reaching $3.5 billion for oil and seeds, data from the Canola Council of Canada indicates.
Canadian leaders have emphasized the importance of reducing reliance on the U.S. as a trading partner in response to Trump’s tariffs threats. However, Saturday’s announcement from Beijing highlights the limited alternatives available. Despite being Canada’s second-largest trading partner, China lags significantly behind the U.S.
Canadian Prime Minister Justin Trudeau, reacting to the August tariffs on Chinese EVs and metals, accused China of “not playing by the same rules.” The automotive industry is a critical component of Canada’s manufacturing sector, with many plants supplying vehicles to the U.S. market.
