China announced today, Saturday, the imposition of customs duties on Canadian imports of agricultural and food products, in response to the fees imposed by Canada on electric cars, Chinese steel and aluminum products, according to Reuters.
According to a statement issued by the Chinese Ministry of Commerce, which was reported by the German Agency, as of March 20, a 100% customs tariff will be imposed on rapeseed oil (the skull), oil cakes, and peas imported from Canada, while a 25% tariff will be imposed on water products and pork.
The ministry explained that the investigation, which it conducted on combating discrimination concluded that “Canadian restrictions against some Chinese products disrupted the natural trade system, and damaged the legitimate rights and interests of Chinese companies,” according to French.
The ministry also confirmed, according to Reuters, that this step comes in response to the customs definitions imposed by Ottawa last year on electric, steel and aluminum cars from China.
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The German News Agency reported that in October 2024, Canada imposed 100% customs duties on Chinese electric cars, in addition to 25% on steel and aluminum imports.
Reuters noted that the Chinese Ministry of Trade considered these fees “a serious violation of the rules of the World Trade Organization and discriminatory measures that are strongly harmful to the rights and interests of Chinese companies.”
This step comes amid the escalation of commercial tensions between China and Western countries, as the United States and the European Union also imposed customs duties on Chinese exports, especially targeting Chinese electric cars, according to German.
Reactions and repercussions
“We urge Canada to correct its practices immediately, raise its restrictions, and cancel its negative consequences on commercial relations between the two countries,” a spokesman for the Chinese Ministry of Commerce told France Press.
The report also indicated that Canada, along with the United States, has taken measures against Chinese companies, claiming that the latter is receiving unfair government support, giving it an illegal competitive advantage in global markets.
Meanwhile, Reuters have confirmed that China is one of the largest Canadian Sg Champion Oil importers, a widely used product in cooking and industry, making this step an economic blow to Canada’s agricultural exports.
A political and historical context
France Presse said that the relations between China and Canada have witnessed an increasing tension since Canada arrested a prominent executive official at Huawei in 2018, which China responded to the arrest of Canadian citizens, which led to a diplomatic crisis that lasted for years.
These measures also come at a time when global trade tensions are increasing, as the administration of US President Donald Trump imposes additional trade definitions on several countries, including China and Canada, according to Reuters.
According to the German News Agency, Canada has not yet issued an official response to the new Chinese tariffs, but this escalation is expected to complicate trade relations between the two countries.
On the other hand, Reuters believes that this trade war may affect global markets, especially with the increasing commercial barriers between major countries, which may lead to unrest in global supply chains.
