China announced tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies Ottawa introduced in October and opening a new front in a trade war largely driven by US President Donald Trump\u2019s tariff threats.<\/p>\n\n\n\n
The levies, announced by the commerce ministry and scheduled to take effect on March 20, match the 100% and 25% import duties Canada slapped on China-made electric vehicles and steel and aluminium products just over four months ago.<\/p>\n\n\n\n
By excluding canola, which is also known as rapeseed, and was one of Canada\u2019s top exports to the world\u2019s No.1 agricultural importer prior to China investigating it for anti-dumping last year, Beijing may be keeping the door open for trade talks.<\/p>\n\n\n\n
But the tariffs also serve as a warning shot, analysts say, with the Trump administration having signalled it could ease 25% import levies the White House is threatening Canada and Mexico with if they apply the same extra 20% duty he has slapped on Chinese goods over fentanyl flows.<\/p>\n\n\n\n
\u201cCanada\u2019s measures seriously violate World Trade Organization rules, constitute a typical act of protectionism and are discriminatory measures that severely harm China\u2019s legitimate rights and interests,\u201d the commerce ministry said in a statement.<\/p>\n\n\n\n
China will apply a 100% tariff to just over $1 billion of Canadian rapeseed oil, oil cakes and pea imports, and a 25% duty on $1.6 billion worth of Canadian aquatic products and pork.<\/p>\n\n\n\n
\u201cThe timing may serve as a warning shot,\u201d said Dan Wang, China director at Eurasia Group in Singapore. \u201cBy striking now, China reminds Canada of the cost of aligning too closely with American trade policy.\u201d<\/p>\n\n\n\n
\u201cChina\u2019s delayed response (to Ottawa\u2019s October tariffs) likely reflects both capacity constraints and strategic signalling,\u201d she added. \u201cThe commerce ministry is stretched thin, juggling trade disputes with the U.S. and European Union.\u201d<\/p>\n\n\n\n
\u201cCanada, a lower priority, had to wait its turn.\u201d<\/p>\n\n\n\n
The Canadian embassy in Beijing did not immediately respond to a Reuters request for comment.<\/p>\n\n\n\n
Canadian Prime Minister Justin Trudeau said in August that Ottawa was imposing the levies to counter what he called China\u2019s intentional state-directed policy of over-capacity, following the lead of the United States and European Union, both of which have also applied import levies to Chinese-made EVs.<\/p>\n\n\n\n
In response, China in September launched an anti-dumping investigation into Canadian canola imports. More than half of Canada\u2019s canola exports go to China and the trade was worth $3.7 billion in 2023, according to the Canola Council of Canada.<\/p>\n\n\n\n
\u201cThe investigation on Canadian canola is still ongoing. That canola was not included in the list of tariffs this time might also be a gesture to leave room for negotiations,\u201d said Rosa Wang, an analyst with agricultural consultancy JCI.<\/p>\n\n\n\n
Beijing could also be hoping that a change in government in Ottawa makes it more amenable. Canada\u2019s next national election must be held by October 20.<\/p>\n\n\n\n
China is Canada\u2019s second-largest trading partner, trailing far behind the United States. Canada exported $47 billion worth of goods to the world\u2019s second-largest economy in 2024, according to Chinese customs data.<\/p>\n\n\n\n
\u201cTo be honest I don\u2019t understand why they are doing this one at all,\u201d said Even Pay, agriculture analyst at Trivium China.<\/p>\n\n\n\n
\u201cI expect Beijing will use the election and change of leader as an opportunity to reset relations as they did with Australia,\u201d she added.<\/p>\n\n\n\n
China in 2020 introduced a series of tariffs, bans and other restrictions on key Australian exports, including barley, wine, beef, coal, lobster and timber in retaliation to Canberra calling for a COVID origins probe.<\/p>\n","protected":false},"excerpt":{"rendered":"
China announced tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies Ottawa introduced in October and opening a new front in a trade war largely driven by US President Donald Trump\u2019s tariff threats. The levies, announced by the commerce ministry and scheduled to take effect on March […]<\/p>\n","protected":false},"author":2,"featured_media":313,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-312","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world-news"],"yoast_head":"\n