China has decided to place tariffs on over $2.6 billion worth of food and agricultural items coming from Canada. This move is a response to taxes Canada imposed on some Chinese products back in October. The new tariffs will begin on March 20.
China’s new taxes include a 100% tariff on about $1 billion of Canadian rapeseed oil and another 25% on $1.6 billion of Canadian fish and pork. This is similar to the taxes Canada put on electric vehicles and steel from China.
Interestingly, China did not include canola, a major Canadian crop, in these new tariffs. This might suggest that China is open to discussing trade with Canada. Some experts believe China is sending a message about the risks of Canada getting too close to U.S. trade policies.
Canadian Prime Minister Justin Trudeau said that the country is trying to push back against what he describes as China’s unfair practices in trade. Earlier, China also started an investigation into Canadian canola products due to concerns of dumping.
About half of Canada’s canola exports go to China, which in 2023 amounted to $3.7 billion. The investigation is still ongoing, so not adding canola to the tariff list this time could be a sign that China wants to negotiate.
Beijing might be hoping that after the upcoming Canadian election on October 20, a new government could lead to improved relations. Currently, Canada is China’s second-largest trading partner, following the United States, and they exported about $47 billion worth of goods to China in 2024.
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