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Beijing says it will impose tariffs on Canadian agricultural products and food in retaliation for Ottawa’s taxation on Chinese electric vehicles, depriving them of greater uncertainty about the North American country’s economy.
On Saturday, China’s Commerce Department said it would impose 100% tariffs on Canadian rapeseed oil and peas imports and 25% collection on pork and some seafood imports.
It said it corresponds to Ottawa’s 100% “discriminatory” tariffs on electric vehicles announced in August, and 25% following similar actions by the US.
In response, Beijing filed a complaint with the World Trade Organization and launched an anti-dumping investigation into Canadian imports of rapeseed products.
The tariffs came into effect on March 20, increasing uncertainty in Canada’s export industry, and the Trump administration has threatened to impose blanket tariffs on imports from neighbors.
This week, Trump betrayed his threat of impose a heavily 25% tariff on Mexico and Canada, but maintained the possibility of the measures imposed in April.
China is an important market for Canadian rapeseed, a crop also known as canola. China has bought $3.5 billion worth of Canadian canola products, including oil and seeds, making it the largest market after the US, according to a trade group at Canada Council of Canada.
Canadian politicians are responding to Trump’s threat by highlighting the need to diversify from their key trading partners. However, Beijing’s announcement on Saturday highlights the limited options available to the country. China is Canada’s second-largest trading partner, far behind the US.
Canadian Prime Minister Justin Trudeau accused China of “not playing the same rules” when it announced tariffs on China’s EVs and metals in August. Carmaking is one of Canada’s most important manufacturing sectors, with plants supplying the US market.
