China imposed tariffs on some Canadian agricultural and food products on Saturday in response to Ottawa’s October levies on Chinese-made electric vehicles (EVs), steel, and aluminium products.
The tariffs announced by the commerce ministry, to take effect on March 20, add a new front to a trade war largely driven by U.S. President Donald Trump’s announcement of tariffs on Canada, Mexico and China and threats of protectionist measures on other nations.
100% Tariff
China will apply a 100% tariff to Canadian rapeseed oil, oil cakes and pea imports, and a 25% duty on Canadian aquatic products and pork, the ministry said in a statement.
Canada’s 100% tariff on Chinese EVs and 25% levy on its aluminium and steel products “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 ministry said.
Canadian Levies
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.
China is Canada’s second-largest trading partner, trailing far behind the United States.
Trade War
China‘s foreign minister Wang Yi said on Friday that Beijing will “resolutely counter” U.S. pressure on tariffs and the fentanyl issue.
Adding that major powers “should not bully the weak”, in a veiled swipe at the Trump administration‘s foreign policy, the top diplomat also presented China as a reliable global power in the midst of geopolitical turmoil and U.S. President Donald Trump’s withdrawal from international institutions, part of a clear appeal from Beijing to Europe and countries in the Global South.
The U.S. levied an additional 10% tariff on Chinese imports this week over the continued flow of the deadly opioid fentanyl into the country, threatening to worsen an escalatory spiral of trade actions.
(With inputs from Reuters)
