China imposes retaliatory tariffs on Canada

tariffs on key select Canadian exports

On Saturday, March 8, 2025, China imposed significant tariffs on select Canadian imports, effective March 20, 2025.

The Chinese Ministry of Commerce made this revelation as it reviewed tariffs imposed on the country by Canada.

The tariffs include a 100% levy on key Canadian exports like canola oil, oilseed cakes, peas, and rapeseed oil.

The tariffs are a direct retaliation for Canada’s decision to impose tariffs on Chinese products such as electric vehicles, steel, and aluminum.

Additionally, a 25% tariff will be levied on seafood and pork imports from Canada.

The Chinese Ministry of Commerce made it clear that Canada’s unilateral trade actions were unacceptable and without proper investigation.

This move is expected to severely hurt Canada’s agricultural industry, especially as these tariffs target some of its most important exports.

The repercussions for Canadian farmers and producers could be severe as China seeks to reduce its imports from Canada and reconfigure its supply chains.

The Chinese tariffs, were also a clear warning to Canada and, indirectly, Mexico not to cooperate with the United States on trade.

The Trump administration, like the Biden administration before it, has been demanding that Canada and Mexico not serve as back doors for low-cost Chinese goods to enter the U.S. market under North American free trade agreements.

China’s State Council Tariff Commission said the measures were in response to Canada’s 100 percent tariffs on electric cars from China and its 25 percent tariffs on Chinese steel and aluminum, which took effect in October.

China’s Ministry of Commerce said in a separate statement that China was urging Canada to immediately correct its wrong practices, lift restrictive measures and eliminate adverse effects.

The Canadian government had no immediate comment.

According to the New York Times, the Chinese agencies’ statements were carefully made to comply with World Trade Organization rules.

It did not mention any effort to influence Canada or Mexico during their current trade discussions with the United States.

But a commentary released by China’s state television highlighted that a key goal for China is dissuading officials in Ottawa and Mexico City from falling to American pressure for higher Canadian and Mexican tariffs on Chinese goods.

China Central Television said, “The Chinese tariffs are a powerful countermeasure to Canada’s wrong choice and a strong warning to some countries that intend to impose additional tariffs on China in exchange for the United States not to impose additional tariffs on them,”

Prime Minister Justin Trudeau of Canada announced tariffs on imports from China last year, partly to protect heavy government-supported investments by automakers in electric car factories in Canada.

But there were also growing concerns and complaints from the Biden administration that Chinese goods were flooding into Canada.

These concerns were recently echoed by the Trump administration.

The flooding they say is partly because of that influx from China, Canadian steel mills, the aluminum producers and other manufacturers rely heavily on the American market for their sales.

They take advantage of duty-free shipments.

Canada and Mexico have both had steeply rising trade surpluses recently with the United States.

By imposing tariffs on Canada’s extensive shipments of canola and other agricultural products to China, Beijing’s leaders have sent a reminder that China is also a large market.

Canada exported almost $1 billion worth of canola oil and canola meal, used in cooking and animal feed, to China last year.

Her exports to China of canola seed, worth even more last year, are the subject of a separate and yet to be resolved Chinese anti-dumping case.

Canadian exports of canola, also known as rapeseed, to China surged last autumn as traders rushed to sell supplies to Chinese stockpiles before tariffs could take effect.

The Chinese government had said in late September that it would take up to a year to decide how to respond to the Canadian tariffs.

It decided to act immediately after President Trump imposed 25 percent tariffs this week on imports from Canada and Mexico.

But it then quickly suspended them for cars and many other goods.

China may have a little more trade leverage with Canada than with Mexico.

For each dollar of Canadian or Mexican goods that China imports, China sells almost $3 of goods to Canada and almost $5 of goods to Mexico.

China’s exports to Mexico have doubled since 2019 as gasoline-powered Chinese cars in particular have rapidly increased their sales there at the expense of American and European manufacturers with factories in Mexico.

The New York Times reports that China’s action on Saturday is certain to reawaken unpleasant memories in Canada of 2019.

The memories are about a similar Chinese tariff on Canadian canola for two years starting in February 2019.

China imposed that tariff after the Canadian authorities detained Meng Wanzhou, a top executive of the Chinese telecommunications giant Huawei, on a warrant from the United States.

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