Canada Hit With Major New Retaliatory Tariffs By China
China has announced sweeping new tariffs on Canadian agricultural products — marking a significant escalation in trade tensions between the two nations. The move comes in retaliation for tariffs Canada imposed on Chinese electric vehicles, steel and aluminum last year, mirroring similar actions taken by the U.S. and the European Union.
Beijing’s decision — set to take effect on March 20 — will see a 100% tariff imposed on Canadian rapeseed oil, oil cakes and peas, along with a 25% duty on pork and aquatic products. The tariffs cover over $2.6 billion worth of Canadian exports and are seen as a warning shot amid broader trade disputes.
The tariffs come as President Donald Trump maintains his firm stance on trade — having imposed a 25% tariff on goods from Canada, Mexico and China. While certain exemptions and suspensions have been introduced — the policy has sparked concerns about inflation and economic slowdowns. Trump has also signaled that additional tariffs on European imports could follow.
Canada’s Prime Minister Justin Trudeau had imposed the levies on Chinese-made electric vehicles, steel and aluminum last October — aligning with actions taken by the U.S. and European allies. In response — China framed its retaliatory tariffs as necessary to protect its own economic interests — with its Customs Tariff Commission accusing Canada of disrupting normal trade relations.
“Despite China’s repeated opposition and dissuasion — Canada has taken unilateral restrictive measures on electric vehicles, steel, aluminum and other products imported from China without investigation,” China’s commission said in a statement. The Ministry of Commerce echoed this sentiment — urging Canada to “correct its wrong practices” and reverse the tariffs.
This is not the first time China has targeted Canadian agricultural exports in a trade dispute. In 2019 — Beijing imposed restrictions on Canadian rapeseed oil after Canada detained a top Huawei executive at the request of the U.S. While that dispute was eventually resolved — the latest trade war adds another layer of uncertainty for Canadian exporters.
China remains Canada’s second-largest trading partner — though it lags significantly behind the U.S. in trade volume. Canada exported $47 billion worth of goods to China in 2024 — making these tariffs a serious concern for the nation’s economy. With Canada’s next national election set for October — analysts suggest Beijing could be waiting to see if a change in leadership might lead to a shift in trade policy.
