China Hits Canada With Retaliatory Tariffs On Farm And Food Products

In the latest salvo of the second global trade war, on Saturday, China announced retaliatory tariffs on some Canadian farm and food imports, after Canada imposed duties in October on Chinese-made electric vehicles and steel and aluminum products.

Additional 100% tariffs will be imposed on Canadian rapeseed oil, oil cakes and peas, and additional 25% tariffs will apply to pork and some seafood imports. The new duties become effective March 20, according to a statement by the Customs Tariff Commission of the State Council.

China said it was responding to “discriminatory” tariffs of 100% on electric vehicles and 25% on steel and aluminium that Ottawa announced in August, which followed similar actions by the US.

China is an important market for Canadian rapeseed, a crop also known as canola. China bought $3.5bn worth of Canadian canola products, including oil and seeds, making it the largest market behind the US, according to the Canola Council of Canada trade group.

The duties come in retaliation for Ottawa imposing tariffs against Chinese imports in October, including a 100% surtax on all Chinese-made EVs and 25% on steel and aluminum imports.

“Despite China’s repeated opposition and dissuasion, Canada has taken unilateral restrictive measures on electric vehicles, steel, aluminum and other products imported from China without investigation, undermining China-Canada economic and trade relations,” read the statement by the customs authorities.

The decision to impose retaliatory duties comes after an “anti-discrimination probe, which found out that Canada’s restrictive measures against some Chinese products have disrupted normal trade order and harmed the legitimate rights and interests of Chinese enterprises,” it added.

Canada announced tariffs on Chinese goods last August following similar duties being imposed by the U.S. and the European Union against Chinese-made EVs and other products. The Western governments – and certainly Trump – say China’s subsidies give its industry an unfair advantage.

Canadian outgoing Prime Minister Justin Trudeau accused China of “not playing by the same rules” when he announced the tariffs on Chinese EVs and metals in August. Carmaking is one of Canada’s most important manufacturing sectors, with plants supplying the US market.

The tariffs add to global trade tensions already high, with rounds of tariff announcements by the United States, China, Canada and Mexico. This week, Trump backtracked on his threat to impose sweeping 25 per cent tariffs on Mexico and Canada but maintained the possibility of the measures being imposed in April.