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China Hits Canada with $2.6B in Tariffs Amid Trade War
China strikes back! imposes $2.6B in tariffs on Canadian food & agriculture products in response to Ottawa’s levies on Chinese EVs & metals. Canola spared—room for negotiation?
ND
by News Desk
2025-03-08
China Hits Canada with $2.6B in Tariffs Amid Trade War

China has announced tariffs on over $2.6 billion worth of Canadian agricultural and food products, escalating trade tensions after Ottawa imposed levies on Chinese electric vehicles (EVs) and metals in October.

The new tariffs, set to take effect on March 20, will apply:

🔹 100% tariff on over $1 billion of Canadian rapeseed oil, oil cakes, and pea imports
🔹 25% tariff on $1.6 billion worth of aquatic products and pork

Canada's Tariffs Spark Retaliation

This move is seen as a direct response to Canada's 100% and 25% tariffs on Chinese EVs, steel, and aluminum—measures that mirrored U.S. and EU policies targeting China’s overproduction and state subsidies.

"Canada's measures seriously violate WTO rules and harm China's legitimate rights and interests," China’s commerce ministry stated.

Why Canola Was Spared

Interestingly, China excluded canola from the tariff list, despite launching an anti-dumping probe into Canadian canola imports last year.

Analysts suggest this may signal openness to trade negotiations, especially as Canada’s next national election approaches by October 20.

"Beijing could be hoping that a change in government in Ottawa will make it more amenable to negotiations," said Rosa Wang, an analyst at JCI.

China’s Broader Trade Battles

🔻 Trade disputes with the U.S. and EU over Chinese overproduction & state subsidies
🔻 Australia faced similar retaliation in 2020 after calling for a COVID origins probe—China only eased tariffs after a leadership change

What’s Next?

With China being Canada’s second-largest trading partner, these tariffs could significantly impact Canadian exports. However, Beijing’s cautious approach on canola hints that diplomatic negotiations may still be possible.
Tagged:

China

Economy

Canada

TradeWar

Tariffs
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