China Imposes Retaliatory Tariffs on Canada Amid Escalating Trade Tensions
By Staff, Agencies
On Saturday, China's Ministry of Commerce announced retaliatory tariffs on Canadian agricultural and food products in response to Canada's tariffs on Chinese goods.
The move, effective from March 20, includes a 100 percent tariff on Canadian rapeseed oil, oil cakes and pea imports, as well as a 25 percent duty on Canadian aquatic products and pork.
According to the ministry, Canada's tariffs on Chinese electric vehicles [EVs] and aluminum and steel products have disrupted normal trade and harmed Chinese enterprises' rights and interests.
While the retaliatory measures were primarily triggered by US-led tariffs targeting China's EV overcapacity, the dispute has drawn attention to a broader trade war, largely driven by US President Donald Trump's protectionist policies.
Since taking office, Trump has initiated tariffs and trade threats against multiple countries as part of a strategy to push them into meeting US demands, unsettling global markets and leading to retaliatory actions from affected nations.
Canada, which implemented its tariffs on Chinese products following the lead of the US, now finds itself in the crosshairs of both US and Chinese tariff offensives. From China's perspective, these tariffs are seen as unilateral actions violating World Trade Organization rules.
During a press conference on Friday, Chinese Foreign Minister Wang Yi called on the US to reassess its approach, questioning whether its trade wars have improved the competitiveness of US manufacturing.
He emphasized that China-US economic relations are mutually beneficial and that cooperation would lead to win-win outcomes. However, if the US continues its pressure, China will respond with firm countermeasures, Wang warned.
Meanwhile, Canada has also been embroiled in escalating trade tensions with the US, its largest trade partner.
The Globe and Mail, a Canadian daily, urged Ottawa to stand firm against Trump’s unpredictable tariff strategies, arguing that Trump’s tariffs are part of a deliberate approach to sow instability and project power.
On Tuesday, the US imposed a 25 percent tariff on most Canadian and Mexican imports, though some levies were later suspended amid pressure from US industries.
The exemptions, including on auto and energy products, will expire on April 2, at which point Trump has threatened to impose global reciprocal tariffs on all US trading partners.
The Globe and Mail editorial emphasized that Canada should ignore Trump’s fluctuating rhetoric and instead adopt a dollar-for-dollar retaliatory tariff system while strengthening trade alliances and internal economic measures.
This strategy, it argued, is the most sensible approach to countering a policy that could destabilize both sides of the border.
US economists have voiced concerns about the potential consequences of the aggressive trade policies. Some predict that the tariffs could significantly slow US economic growth and raise consumer prices, increasing the risk of stagflation.
At a recent National Association for Business Economics conference, economists expressed caution about the tariffs' impact on the US economy, with Michael Strain of the American Enterprise Institute estimating that import taxes could reduce economic growth by as much as 0.5 percent.
The Globe and Mail's editorial concluded that Canada must focus on decisive actions to protect its economic interests rather than getting caught up in Trump’s shifting policies.
