- China has announced retaliatory tariffs on Canadian agricultural exports, including canola, pork and seafood.
- Canadian farmers and exporters face potential losses as these tariffs could reduce demand and increase costs.
- The move follows ongoing trade disputes and signals heightened tensions between the two countries.
China has introduced a series of retaliatory tariffs on Canadian agricultural products, thereby further straining the trade relations between the two countries.
After Canada imposed duties in October on Chinese-made electric vehicles and steel and aluminium products, China announced retaliatory tariffs on some Canadian farm and food imports.
Agricultural products including canola, pork and seafood, sectors that are major part of the country's economy, are some of the products that will take a hit as a result. This is seen as a response to Canada's recent trade policies and diplomatic tensions with China.
As per reports, 100 percent tariffs will be imposed on Canadian rapeseed oil, oil cakes and peas, while 25 percent tariffs will apply to pork and aquatic products.
The new tariffs, that will come into effect on March 20, will likely increase costs for Canadian exporters and could make Canadian agricultural goods less competitive in the Chinese market.
“Despite China’s repeated opposition and dissuasion, Canada has taken unilateral restrictive measures on electric vehicles, steel, aluminum and other products imported from China without investigation, undermining China-Canada economic and trade relations,” read the statement by the customs authorities.
In August, Canada imposed tariffs on Chinese goods, aligning with similar measures introduced by the U.S. and the European Union on Chinese-made EVs and other products. Western governments argue that China’s subsidies create an unfair competitive edge for its industries.
As China is a top market for Canadian canola, with almost $5 billion in export value, the steep Chinese tariffs are highly restrictive and will have widespread repercussions across the country.
“The impacts will be widespread and will be felt across the industry, starting with farmers who grow the crop every year and extending beyond there to the companies that provide them with seeds and inputs … to grain companies and processors and ultimately to exporters,” Chris Davison, president of the Canola Council of Canada said.
China heavily subsidizes its state-owned manufacturing enterprises, enabling them to produce a wide range of goods, from commercial airplanes to electric vehicles, at artificially low prices.
The strategy aims to capture market share from North American and European companies, ultimately undermining their competitiveness.
Edited by Harshajit Sarmah
