China, on Saturday, March 8, 2025, announced tariffs on over $2.6 billion worth of Canadian agricultural and food products.
This is in retaliation to levies Canada introduced against China in October. It also opened a new front in a trade war largely driven by United States 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.
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 last year, Beijing may be keeping the door open for trade talks.
But the tariffs also serve as a warning shot, analysts say, with Trump’s 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 imposes 15% tariffs on U.S. coal, LNG imports
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. By striking now, China reminds Canada of the cost of aligning too closely with American trade policy,” said Dan Wang, China director at Eurasia Group in Singapore.
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.
China in 2020 introduced a series of tariffs, bans and other restrictions on key Australian exports, including barley, wine, beef, coal, lobster, and timber in retaliation to Canberra calling for a COVID origins probe.
Beijing did not begin lifting the bans until 2023, one year after Australian Prime Minister Anthony Albanese ousted Scott Morrison, who had called for the inquiry.
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