BEIJING (AP) – On Saturday, China announced new retaliatory tariffs targeting certain Canadian farm and food imports. This move follows Canada’s decision to impose tariffs in October on Chinese-made electric vehicles (EVs) as well as steel and aluminum products.
The new tariffs, which will take effect on March 20, include an additional 100% duty on Canadian rapeseed oil, oil cakes, and peas. Meanwhile, an additional 25% tariff will be levied on pork and aquatic products imported from Canada.
This escalation in tariffs contributes to the heightened global trade tensions that have been intensifying, with various rounds of tariff announcements occurring between the United States, China, Canada, and Mexico. The dynamics of international trade relationships are increasingly strained as nations impose tariffs on one another in a tit-for-tat manner.
The Chinese Customs Tariff Commission stated that these retaliatory tariffs were a direct response to Canada’s unilateral trade restrictions. According to their statement, Canada imposed tariffs on Chinese imports without conducting a thorough investigation, thereby undermining economic and trade relations between China and Canada. The Chinese government expressed that these actions disrupt the normal trade order and compromise the legitimate rights and interests of Chinese enterprises.
This decision by China followed an "anti-discrimination probe," which determined that Canada's tariffs against specific Chinese products were harmful to trade. Canada had initially announced its tariffs on Chinese goods back in August, echoing similar actions that had already been taken by the United States and the European Union. The Western governments claim that China’s financial subsidies to its manufacturing industry create an unlevel playing field in global markets.
As the geopolitical landscape continues to evolve, such trade disputes are likely to exacerbate the challenges faced by international commerce and may have wider implications for the global economy. The ongoing tension indicates a complex interplay of national interests, economic strategies, and the struggle for trade dominance among major global players.
Amid these developments, businesses in both countries, as well as consumers, may experience the repercussions of these newly imposed tariffs. This situation highlights the delicate balance that nations must maintain as they navigate trade relationships, policy decisions, and economic competition on the world stage.
