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Canada is facing trade uncertainties as China retaliates against Ottawa’s tariffs on Chinese electric vehicles by imposing tariffs on Canadian agricultural and food products.
China’s commerce ministry announced on Saturday that it would impose 100% tariffs on Canadian rapeseed oil and pea imports, along with a 25% levy on pork and some seafood imports.
This move comes in response to Ottawa’s announcement of “discriminatory” tariffs on EVs and steel/aluminium in August, following actions taken by the US.
In retaliation, Beijing has filed a complaint with the World Trade Organization and initiated an anti-dumping probe on Canadian rapeseed imports.
These tariffs will go into effect on March 20, adding to the uncertainty for Canada’s export industries as the Trump administration considers blanket tariffs on Canadian imports.
While Trump has backed off from imposing tariffs on Mexico and Canada, the possibility remains for April.
China is a significant market for Canadian rapeseed, with China being the second-largest market for Canadian canola products after the US.
Canadian politicians are emphasizing the need to diversify away from the US as a trading partner, but China’s actions highlight the limited alternatives available to Canada.
Canadian Prime Minister Justin Trudeau has criticized China for not adhering to fair trade practices when imposing tariffs on Chinese EVs and metals. The automotive industry is crucial to Canada’s economy, with plants supplying the US market.