The latest front in the tariff war has opened in retaliation by China against Canada on new tariffs which hit a significant $2.6 billion worth of Canadian agricultural and food products. Indeed, the declaration followed on Saturday after tariffs were imposed by Canada in October, adding steam to the growing global trade conflict running the show for the threats of additional tariffs by President Donald Trump.
China Strikes Back with New Tariffs
New tariffs from the Ministry of Commerce in China announced that these new tariffs would apply from March 20, as with Canada’s imposition of 100 % duty on imported Chinese EVs and 25% on steel and aluminum products. This is another evidence of the rising tension in the relations between countries in global trading affairs.
Breakout China’s Tariff Rate
Complete tariff for mustard imports, which are not one of the major exports of Canada, thus almost leaving an open door for negotiation, yet so far it has acted in drastic measures against other products:
- 100% on mustard oil, oil cake, and peas over $1 billion.
- 25% on aquatic products lends itself to fish and pork worth $16 billion.
Canola Trade Investigation On
In August 2024, Canadian Prime Minister Justin Trudeau announced tariffs on Chinese Electrical Vehicles, steel, and aluminum. However, initially, China did not retaliate but initiated an anti-dumping investigation for Canadian mustard in September 2024.
More than half of canola exports from Canada go to China. In 2023, the value of Canada-China trade amounted to $370 million, according to the Canola Council of Canada. Up till now, China hasn’t levied tariffs against canola, but the investigation continues.
China: A Major Trade Partner of Canada
Canada’s economy is closely tied to China. Besides the US, China is the second-largest trade partner for Canada such that in 2024. The data received by customs from China revealed that trade relations in goods imported from Canada had reached up to $47 billion. As tariffs escalate, trade between such nations would ultimately be strained further in the coming months.
Final Words
Many policies and businesses would have to brace up for several disturbances as these rise in global trade tensions. The tariff war between China and Canada is likely to have far-off economic consequences for various industries, farmers themselves, and worldwide international trade policies. Will it ease ahead with negotiations, or is this merely the beginning of something bigger? Only time can tell.