China hits back at Canada with fresh agriculture tariffs

On Saturday, China declared tariffs on more than $2.6 billion in Canadian agricultural and food goods, responding to the duties that Ottawa implemented in October and escalating a trade conflict primarily fueled by U.S. President Donald Trump’s tariff threats.

The tariffs, revealed by the commerce ministry and set to start on March 20, align with the 100% and 25% import taxes Canada imposed on electric vehicles and steel and aluminum goods from China a little more than four months back.

By omitting canola, also referred to as rapeseed, and which was among Canada’s leading exports to the world’s largest agricultural importer before China examined it for anti-dumping last year, Beijing might be leaving room for trade discussions.

Analysts indicate that the tariffs act as a warning, as the Trump administration has hinted it might reduce the 25% import duties that the White House is imposing on Canada and Mexico if they implement the same additional 20% tax he has placed on Chinese products related to fentanyl shipments.

“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.”