China imposes retaliatory tariffs on Canada rapeseed oil, pork. - Bloomberg

China imposes retaliatory tariffs on Canada rapeseed oil, pork. - Bloomberg

The global trade landscape is once again experiencing turbulence, with China imposing retaliatory tariffs on Canadian exports, including rapeseed oil, oilcakes, and peas [1]. This latest move comes in response to Canada's imposition of tariffs on imported solar panels and aluminum foil from China [1].

The tariffs, which amount to a 100% increase, will take effect from March 20 [1]. The decision has raised concerns among Canadian farmers, who have already been grappling with the challenges of low commodity prices and adverse weather conditions [2].

Canada is a significant exporter of rapeseed oil and its by-products to China, with exports valued at over CAD 2 billion ($1.55 billion) in 2023 [3]. The tariffs could have a significant impact on the Canadian economy, particularly in the agricultural sector.

The implications of this trade dispute extend beyond Canada's borders. The United States, which is a major importer of both Canadian and Chinese commodities, could also be affected. For instance, the Distilled Spirits Council of the U.S. and its counterparts in Mexico and Canada have expressed concern over potential tariffs on distilled spirits, which could lead to a cycle of retaliatory tariffs [3].

The trade dispute between China and Canada is not an isolated incident. The United States and China have been engaged in a protracted trade war, with both sides imposing tariffs on a range of goods. The tariffs have led to increased costs for businesses and consumers, reduced trade flows, and strained relations between the two countries [3].

The situation is further complicated by the ongoing COVID-19 pandemic, which has disrupted global supply chains and reduced demand for commodities. Against this backdrop, it is essential for governments and businesses to work collaboratively to explore solutions that prevent potential trade disputes and promote free and fair trade.

References:

[1] Reuters. (2025, March 7). China announces retaliatory tariffs on some Canada farm food products. Retrieved from https://www.ctvnews.ca/canada/article/china-announces-retaliatory-tariffs-on-some-canada-farm-food-products/

[2] Yahoo. (2025, March 7). China imposes retaliatory tariffs on Canada - 012750723.html. Retrieved from https://uk.news.yahoo.com/china-imposes-retaliatory-tariffs-canada-012750723.html

[3] CNBC. (2025, February 1). Tariffs are not the answer: Industry and corporate leaders react to Trump tariffs on Mexico, Canada, and China. Retrieved from https://www.cnbc.com/2025/02/01/tariffs-are-not-the-answer-industry-and-corporate-leaders-react-to-trump-tariffs-on-mexico-canada-and-china.html