China has introduced tariffs worth $2.6 billion on Canadian agricultural and food products effective March 20, retaliating against Canada’s previous import duties, reflecting an intensifying trade conflict. The tariffs include significant levies on rapeseed oil and aquatic products, while leaving canola untouched, suggesting openness to negotiations amid the backdrop of U.S. influenced trade tensions. Upcoming Canadian elections may shape future diplomatic relations.

On March 20, China will implement tariffs exceeding $2.6 billion on various Canadian agricultural and food products. This decision is a response to Canada’s earlier imposition of import duties on China’s electric vehicles, steel, and aluminum products which occurred roughly four months prior. The retaliatory measures signify a deepening trade conflict primarily instigated by U.S. President Donald Trump’s tariff policies.

The Chinese commerce ministry announced the levies, which include a 100% tariff on over $1 billion in Canadian rapeseed oil, oil cakes, and peas, along with a 25% duty on $1.6 billion worth of Canadian aquatic products and pork. Notably, the absence of tariffs on canola, a significant Canadian export, suggests a potential willingness from Beijing to engage in dialogue regarding trade relations.

According to analysts, these tariffs may serve as a cautionary measure as China exhibits its disapproval of Canada’s alignment with U.S. trade policies. Political factors also play a role, as the delayed response from China may indicate its strategy to handle multiple trade disputes, also prioritizing issues with the U.S. and European Union over the Canadian case.

Canadian Prime Minister Justin Trudeau had previously stated that the levies against China are part of efforts to address state-directed overcapacity in Chinese industries, echoing similar sentiments expressed by both the United States and the European Union. In September, following the imposition of tariffs by Canada, China initiated an anti-dumping investigation concerning Canadian canola imports.

Trade relations between Canada and China are under scrutiny as Canada exported approximately $47 billion worth of goods to China in 2024, making it the second-largest trading partner for Canada, while the U.S. remains the foremost. Analysts suggest that the upcoming Canadian elections may influence future negotiations, with hopes that a shift in leadership may lead to improved relations, similar to Australia’s recent diplomatic thaw with Beijing after a change in government.

In summary, China’s announcement of tariffs on Canadian agricultural products represents a significant escalation in the ongoing trade conflict triggered by U.S. policies. While the exclusion of canola from the tariffs may indicate a possibility for negotiation, the punitive measures reflect China’s determination to assert its trade interests. The upcoming Canadian elections could further influence the dynamics of this relationship, as analysts offer hope for a potential reset in trade discussions.

Original Source: www.hindustantimes.com

Related posts:

China Retaliates with New Tariffs on U.S. Imports Amid Trade Tensions Impact of New Tariffs on US-China Trade Relations U.S. Tariffs on Canada, Mexico, and China Implemented Amid Trade Tensions China Implements Targeted Tariffs in Response to U.S. Levies