China imposes tariffs on $3.7 billion of Canadian goods

New tariffs from China on Canadian agricultural and food products have taken effect. This comes as a response to Canada’s tariffs on Chinese electric vehicles. The new levies, worth $3.7 billion, add to the worries of Canadian exporters already facing challenges with the United States. The Chinese government announced these tariffs, claiming that Canada violated World Trade Organization rules. The tariffs include a 100% tax on Canadian canola oil, oil cakes, and pea imports, along with a 25% duty on pork and seafood. The Canadian Canola Growers Association expressed that canola farmers are facing severe trade uncertainty just before planting season. In 2024, Canada exported almost $5 billion worth of canola to China, making it a crucial market for Canadian farmers. The new tariffs are expected to significantly harm these exports. Leaders from Alberta, Saskatchewan, and Manitoba, provinces that rely heavily on canola exports to China, are urging the Canadian government to take action and support affected farmers. The Alberta Canola Association has requested compensation for farmers facing losses due to the tariffs. They reported a dramatic drop in canola prices since the tariffs were announced. Experts warn that this situation could worsen if the tariffs expand, as occurred in previous tensions between Canada and China. Chinese state media highlighted that these measures are a clear signal to Canada. They criticized Canada for aligning with U.S. policies and indicated that China might seek alternative suppliers for the goods it imports from Canada. Relations between Canada and China have struggled in recent years, particularly following the arrest of Huawei executive Meng Wanzhou and two Canadians in China. Despite attempts to mend ties, the imposition of these tariffs has made recovery more difficult.