China has announced fresh tariffs on Canadian agricultural and food products in retaliation for Ottawa’s trade restrictions on Chinese goods.
The move escalates tensions between the two countries, further straining their already fragile trade relationship.
What’s Being Taxed?
Starting March 20, China will impose the following tariffs on Canadian imports:
- 100% tariffs on rapeseed oil, oil cakes, and peas.
- 25% tariffs on pork and aquatic products.
The decision follows an investigation by Beijing into Canada’s trade policies, which it claims have disrupted fair trade and harmed Chinese businesses.
The Root of the Conflict
Last August, Canada imposed a 100% tariff on Chinese electric vehicle imports, aligning with similar measures taken by the United States.
Additionally, Canada placed surtaxes on Chinese steel and aluminum products, citing concerns over unfair state subsidies.
China’s commerce ministry has now fired back, urging Canada to “correct its bad practices” and remove the restrictions.
Canada-China Trade Relations Under Pressure
China has long been one of Canada’s biggest buyers of canola, an essential crop used for cooking oil, animal feed, and biofuel.
However, diplomatic and trade relations between the two nations have been on a rocky path since 2018, when Canada detained Meng Wanzhou, a top Huawei executive.
In response, China arrested two Canadian nationals, plunging bilateral ties into crisis.
With these new tariffs, both countries find themselves increasingly entangled in the broader trade tensions between China, the U.S., and its allies.
What’s Next?
This latest tariff war raises concerns for Canadian farmers and exporters who rely on the Chinese market.
With both sides unwilling to back down, the future of trade relations between Canada and China remains uncertain.
Stay updated with NIGPOST for more global trade news.
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