China has hit back at Canada by slapping tariffs on over $2.6 billion worth of Canadian agricultural and food products, retaliating against levies Ottawa introduced in October.
The new tariffs, which take effect March 20, match the 100% and 25% import duties Canada slapped on China-made electric vehicles and steel and aluminium products. However, canola oil was excluded from the list, suggesting Beijing may be keeping the door open for trade talks.
Analysts say the move serves as a warning shot, with China reminding Canada of the cost of aligning too closely with American trade policy. The timing also coincides with Canada’s upcoming national election, which could provide an opportunity for Beijing to reset relations.
China applied a 100% tariff on $1 billion worth of Canadian rapeseed oil and oil cakes, as well as a 25% duty on $1.6 billion worth of aquatic products and pork. The move is likely to have significant impacts on the Canadian agriculture industry.
Canada exported $47 billion worth of goods to China in 2024, making it Beijing’s second-largest trading partner. However, Ottawa had been taking steps to protect its farmers by introducing tariffs on Chinese-made goods, including electric vehicles and steel products.
The Canadian government has not yet responded to requests for comment, but analysts say the move is a clear signal that Canada needs to be cautious in its trade dealings with China.
Source: https://www.reuters.com/markets/china-announces-retaliatory-tariffs-some-canada-farm-food-products-2025-03-08