Henry Kissinger once say, “To be an enemy of the US is dangerous, but to be a friend is fatal”
Canada just realized the above saying is actually a “holy” truth…
China hits back at Canada with fresh agriculture tariffs
China Sets Retaliatory Tariffs on Canada Rapeseed Oil, Pork
China said it will impose retaliatory tariffs on imports of rapeseed oil, pork and seafood from Canada as the trade war escalates.
China announced tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies Ottawa introduced in October and opening a new front in a trade war largely driven by U.S. President Donald Trump’s tariff threats.
The levies, announced by the commerce ministry and scheduled to take effect on March 20, match the 100% and 25% import duties Canada slapped onĀ China-made electric vehicles and steel and aluminium productsĀ just over four months ago.
There will be a 100% tariff on rapeseed oil, rapeseed meal and pea products, and a 25% levy on pork and some seafood imports, the Ministry of Finance said in aĀ statementĀ on Saturday. The changes will be effective March 20.
Canada last yearĀ imposedĀ a 100% levy on electric cars and 25% on steel and aluminum from China. That led the Chinese government to launch an anti-dumping probe into rapeseed imports from Canada and lodge aĀ complaintĀ with the World Trade Organization to challenge the decision.
Imported pork from the US/Canada displayed at local supermarkets in Shanghai
The levies hurt Chinese industriesā operations and investments, and āseriously violatedā WTO rules, the government said.
Canada is one of the worldās largest producers of rapeseed, a crop also known as canola. Shipments of rapeseed to China stood at 6.39 million tons last year, almost all of which were from Canada.
China is expected to import about 1.75 million tons of rapeseed oil this season, but it brings in larger volumes of the raw oilseed, USDA forecasts show. Chinaās pork imports have dwindled in recent years as it grapples with domestic oversupply amid a weakening economy.
By excluding canola, which is also known as rapeseed, and was one of Canada’s top exports to the world’s No.1 agricultural importer prior to China investigating it forĀ anti-dumpingĀ last year, Beijing may be keeping the door open for trade talks.
But the tariffs also serve as a warning shot, analysts say, with theĀ Trump administrationĀ having signalled it could ease 25% import levies the White House is threatening Canada and Mexico with if they apply the same extra 20% duty he has slapped on Chinese goods over fentanyl flows.
“Canada’s measures seriously violate World Trade Organization rules, constitute a typical act of protectionism and are discriminatory measures that severely harm China’s legitimate rights and interests,” the commerce ministry said in a statement.
China will apply a 100% tariff to just over $1 billion of Canadian rapeseed oil, oil cakes and pea imports, and a 25% duty on $1.6 billion worth of Canadian aquatic products and pork.
“The timing may serve as a warning shot,” said Dan Wang, China director at Eurasia Group in Singapore.
“By striking now, China reminds Canada of the cost of aligning too closely with American trade policy.”
“China’s delayed response (to Ottawa’s October tariffs) likely reflects both capacity constraints and strategic signalling,” she added. “The commerce ministry is stretched thin, juggling trade disputes with the U.S. and European Union.”
“Canada, a lower priority, had to wait its turn.”
US President Donald Trump this week delivered on his threat to hit Canada and Mexico with sweeping import levies and doubled an existing charge on China. The new US tariffs ā 25% duties on most Canadian and Mexican imports and raising the charge on China to 20% ā apply to roughly $1.5 trillion in annual imports.
China is highly vulnerable to the risk of a global trade war. Although the US directly absorbs only about 15% of Chinese exports, more goods are shipped there through Vietnam, Mexico and other countries.
Mexican President Claudia Sheinbaum said Thursday that her country wouldĀ review tariffsĀ on Chinese shipments. Canadian Finance Minister Dominic LeBlanc said in an interview with Bloomberg that Canada isĀ prepared to workĀ with the White House to hash out further measures to prevent China from ādumping into the North American market.ā
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