China opened a new front in a trade war mostly fueled by US President Donald Trump’s tariff threats on Saturday when it slapped tariffs on more than $2.6 billion worth of Canadian food and agricultural exports, retaliating against levies Ottawa introduced in October. The commerce ministry announced the charges, which are set to go into effect on March 20. These levies are similar to the 100% and 25% import duties Canada imposed just over four months ago on steel and aluminum items as well as electric vehicles made in China.
Beijing may be keeping the door open for trade negotiations by ignoring canola, also known as rapeseed, which was one of Canada’s top exports to the world’s top agricultural importer before China looked into it for anti-dumping last year. The Trump administration has hinted that it may reduce import duties by 25%, which the White House is threatening Canada and Mexico with if they impose the same additional 20% levy he has placed on Chinese goods due to fentanyl shipments. Analysts say the tariffs also act as a warning shot.
“Canada’s actions are discriminatory, constitute a typical act of protectionism, and gravely violate World Trade Organization regulations, seriously harming China’s legitimate rights and interests,” the commerce ministry said in a statement. Just over $1 billion worth of Canadian rapeseed oil, oil cakes, and pea imports would be subject to a 100% tax from China, while $1.6 billion worth of Canadian pork and aquatic products will be subject to a 25% levy.
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