China Hits Canada With New Tariffs As Trade Dispute Escalates

Canada’s economic woes deepened as China announced significant tariffs on key agricultural exports — responding to Canadian trade restrictions imposed months earlier. The latest tariffs will impact billions of dollars in trade — further straining relations between the two nations.

Beijing revealed that starting March 20 — Canadian rapeseed oil, oil cakes and peas will face a 100% tariff — while pork and aquatic products will see a 25% tariff. These measures follow Canada’s decision last year to implement steep tariffs on Chinese-made electric vehicles, steel and aluminum.

The retaliatory move comes as President Donald Trump maintains a firm stance on tariffs — placing pressure on Canada and Mexico with potential renewed levies. While his administration previously suspended some tariffs temporarily — a full reinstatement remains on the table. Canada’s attempts to align with U.S. and European trade policies against China now appear to have backfired.

China’s Ministry of Commerce criticized Canada’s actions — stating they disrupted “normal trade order” and harmed Chinese businesses. The Chinese Customs Tariff Commission also accused Canada of enacting discriminatory policies — warning of further repercussions if Ottawa does not reverse course.

This is not the first time China has targeted Canadian exports. In 2019 — Beijing imposed restrictions on Canadian rapeseed oil imports after Canadian authorities arrested a top Huawei executive at the request of the U.S. That dispute led to years of economic friction before a resolution was reached.

Canada’s dependence on trade with China makes the impact of these tariffs particularly significant. In 2024 — Canada exported $47 billion worth of goods to China — its second-largest trading partner. With an election on the horizon — the Trudeau government faces increasing pressure to manage the fallout of these trade policies.

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