China Strikes Back... Retaliatory Tariffs Target Canadian Goods

Chinese and Canadian flags

In a move that marks a significant escalation in trade tensions, China announced it will impose retaliatory tariffs ranging from 25% to 100% on select Canadian agricultural and aquatic products starting March 20th. This decision comes in response to Canada's previous imposition of a 100% tariff on Chinese automobiles and additional tariffs on steel and aluminum, measures that were introduced last year.

The Chinese government's Tariff Commission has declared that the new tariffs will affect Canadian exports such as canola oil, oilcake, and peas, which will face a steep 100% tariff. Additionally, Canadian seafood and pork will be subject to a 25% tariff. This move is seen as part of a broader pattern of retaliatory trade actions, coinciding with U.S. President Donald Trump's aggressive trade policies targeting China and other nations.

A spokesperson for the Chinese Ministry of Commerce expressed discontent, stating that Canada's unilateral tariff measures, enacted without investigation, have strained economic and trade relations between the two countries. The spokesperson emphasized that China had repeatedly objected to Canada's restrictive actions, which have been viewed as damaging to bilateral trade.

The seeds of this dispute were sown in September of the previous year when China launched an 'anti-discrimination investigation' in response to Canada's decision to impose additional tariffs on Chinese electric vehicles, aluminum, and steel. These measures, which included a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum, took effect in October of last year.

In its statement today, China called on Canada to reverse its course, urging the Canadian government to "correct its wrong practices, lift the restrictive measures, and eliminate the negative impact" on trade relations. As tensions rise, this trade conflict between China and Canada adds another layer to the complex web of global trade disputes, further fueled by ongoing U.S. trade policies.