China has announced it will impose retaliatory tariffs on various Canadian goods, marking an intensification of the global trade conflict.
The new tariffs, set to take effect on March 20, include a 100% levy on rapeseed oil, oil cakes, and peas, as well as a 25% tariff on Canadian aquatic products and pork. This move follows Canada’s October decision to impose a 100% tariff on Chinese electric vehicles and a 25% levy on steel and aluminum.
The Chinese government expressed strong opposition, stating: “Canada’s measures seriously violate the rules of the World Trade Organization, are typical acts of protectionism, constitute restrictive measures against China, and seriously damage China’s legitimate rights and interests.”
Rapeseed (Canola) is Canada’s second-largest crop by acreage, generating C$13.6 billion in sales in 2023. Exports of Canadian canola meal and oil to China totaled C$920.9 million and C$21 million, respectively, in 2024. Additionally, Canada’s pea exports to China reached C$303 million last year.
This decision follows recent tariff actions by US President Donald Trump, who imposed 25% tariffs on Canada and Mexico while increasing Chinese import levies to 20%. Trump also granted a one-month exemption for certain auto and agricultural tariffs under the USMCA agreement, signaling a potential review of tariffs on Chinese imports.
Canada responded to China’s move, labeling the tariffs “unjustified.” A statement from the Canadian Global Affairs said, “Canada does not accept the premise of China’s investigation, nor its findings,” addressing China’s non-market policies that distort markets. The statement emphasized that Canada remains open to dialogue with China to resolve trade disputes.
Meanwhile, data released over the weekend showed that consumer prices in China fell by 0.7% year-on-year in February, marking the first negative growth in 13 months. At Beijing’s annual meeting last week, a GDP growth target of 5% for 2025 was set, alongside new stimulus measures to stimulate the economy. However, the 5% growth target is considered challenging amid weak domestic demand and growing trade tensions.
In December, China introduced a significant stimulus package to support economic growth, which included a more lenient monetary policy and higher fiscal spending. Additionally, China lowered its inflation target to 2%, the lowest in over 20 years, while raising its deficit level to 4% of GDP, the highest in three decades.
