China hits Canada with retaliatory tariffs on agricultural products

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Beijing says it will impose tariffs on Canadian agricultural and food products in retaliation for Ottawa’s levies on Chinese electric vehicles, stoking greater uncertainty over the North American country’s economy.

China’s commerce ministry on Saturday said it would impose 100 per cent tariffs on Canadian rapeseed oil and pea imports and a 25 per cent levy on pork and some seafood imports.

It said it was responding to “discriminatory” tariffs of 100 per cent on electric vehicles and 25 per cent on steel and aluminium that Ottawa announced in August, which followed similar actions by the US.

In response, Beijing filed a complaint with the World Trade Organization and launched an anti-dumping probe into Canadian imports of rapeseed products.

The tariffs will take effect on March 20 and adds to uncertainty for Canada’s export industries, with the Trump administration threatening to impose blanket tariffs on imports from its neighbour.

This week, Trump backtracked on his threat to impose sweeping 25 per cent tariffs on Mexico and Canada but maintained the possibility of the measures being imposed in April.

China is an important market for Canadian rapeseed, a crop also known as canola. China bought $3.5bn worth of Canadian canola products, including oil and seeds, making it the largest market behind the US, according to the Canola Council of Canada trade group.

Canadian politicians have responded to Trump’s threats by highlighting the need to diversify away from its main trading partner. But Beijing’s announcement on Saturday underscores the limited options available to the country. China is Canada’s second-largest trading partner, far behind the US.

Canadian Prime Minister Justin Trudeau accused China of “not playing by the same rules” when he announced the tariffs on Chinese EVs and metals in August. Carmaking is one of Canada’s most important manufacturing sectors, with plants supplying the US market.