China has imposed tariffs on more than $2.6 billion worth of Canadian agricultural and food products, escalating trade tensions in response to levies Ottawa introduced in October. The move marks a new front in a broader global trade dispute largely influenced by U.S. President Donald Trump’s tariff policies.
The Chinese Ministry of Commerce announced the tariffs on Saturday, set to take effect on March 20. The new duties mirror the 100 percent and 25 percent import taxes that Canada applied to Chinese electric vehicles and steel and aluminum products four months ago.
Notably, Beijing excluded canola—a key Canadian export—from the tariff list. China has been investigating Canadian canola for anti-dumping violations since last year, a probe that has strained trade relations. Analysts suggest this omission signals Beijing’s willingness to keep negotiations open.
Analysts believe the tariffs also serve as a strategic warning, especially given the Trump administration’s threats to impose 25 percent import duties on Canada and Mexico if they match Washington’s existing 20 percent tariffs on Chinese goods tied to fentanyl production.
“Canada’s measures seriously violate World Trade Organization rules, constitute a typical act of protectionism, and are discriminatory measures that severely harm China’s legitimate rights and interests,” the Chinese Commerce Ministry said in a statement.
Breakdown of China’s New Tariffs on Canadian Imports
– 100 percent tariff on over $1 billion worth of Canadian rapeseed oil, oil cakes, and peas
– 25 percent tariff on $1.6 billion worth of Canadian aquatic products and pork
Dan Wang, China director at Eurasia Group, described the tariffs as a calculated move. “By striking now, China reminds Canada of the cost of aligning too closely with American trade policy,” she said.
She added that China’s delayed response to Ottawa’s October tariffs likely reflects “capacity constraints and strategic signaling,” as Beijing is juggling multiple trade disputes with the United States and the European Union.
The Canadian Embassy in Beijing has not issued an official response. However, Prime Minister Justin Trudeau has previously defended Canada’s tariffs, stating they were imposed to counter China’s state-driven overcapacity policy, following similar measures by the U.S. and EU on Chinese-made electric vehicles.
In September, China retaliated by launching an anti-dumping investigation into Canadian canola imports. Canada exported $3.7 billion worth of canola to China in 2023, accounting for more than half of its total canola trade.
“The 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,” said Rosa Wang, an analyst at JCI Agricultural Consultancy.
China may also be considering political changes in Ottawa, as Canada’s next federal election is scheduled no later than October 2025.
Trade experts suggest China’s response to Canada mirrors its previous economic retaliation against Australia in 2020. Following Canberra’s call for an investigation into the origins of COVID-19, Beijing imposed sweeping restrictions on Australian exports, including barley, wine, beef, coal, lobster, and timber. However, those bans were lifted in 2023 after a change in government in Australia.
“To be honest, I don’t understand why they are doing this one at all,” said Even Pay, agriculture analyst at Trivium China. “I expect Beijing will use the election and change of leader as an opportunity to reset relations, as they did with Australia.”
China remains Canada’s second-largest trading partner, though it lags significantly behind the United States. In 2024, Canada exported $47 billion worth of goods to China, according to Chinese customs data.
Reuters
