China imposed tariffs on Saturday on more than $2.6 billion of Canadian agricultural and food products in response to the tariffs Ottawa implemented in October, escalating a trade conflict primarily fueled by U.S. President Donald Trump's tariff threats.
The levies, announced by the commerce ministry and scheduled to take effect on March 20, match the 100% and 25% import duties Canada slapped on China-made electric vehicles and steel and aluminium products just over four months ago, reports Reuters.
By excluding canola, which is also known as rapeseed, and was one of Canada's top exports to the world's No.1 agricultural importer prior to China investigating it for anti-dumping on 2024, Beijing may be keeping the door open for trade talks.
But the tariffs also serve as a warning shot, analysts say, with the Trump administration having signalled it could ease 25% import levies the White House is threatening Canada and Mexico with if they apply the same extra 20% duty he has slapped on Chinese goods over fentanyl flows.
"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 commerce ministry said in a statement.
China will apply a 100% tariff to just over $1 billion of Canadian rapeseed oil, oil cakes and pea imports, and a 25% duty on $1.6 billion worth of Canadian aquatic products and pork.
"The timing may serve as a warning shot," said Dan Wang, China director at Eurasia Group in Singapore. "By striking now, China reminds Canada of the cost of aligning too closely with American trade policy."
"China's delayed response (to Ottawa's October tariffs) likely reflects both capacity constraints and strategic signalling," she added. "The commerce ministry is stretched thin, juggling trade disputes with the U.S. and European Union."
"Canada, a lower priority, had to wait its turn."
The Canadian embassy in Beijing did not immediately respond to a Reuters request for comment.
Canadian Prime Minister Justin Trudeau said in August that Ottawa was imposing the levies to counter what he called China's intentional state-directed policy of over-capacity, following the lead of the United States and European Union, both of which have also applied import levies to Chinese-made EVs.
In response, China in September launched an anti-dumping investigation into Canadian canola imports. More than half of Canada's canola exports go to China and the trade was worth $3.7 billion in 2023, according to the Canola Council of Canada.
Bd-pratidin English/ Afia
