China Strikes Back: $2.6 Billion Tariffs on Canadian Farm, Food Products

Cracked brick wall painted with a Chinese flag on the left and a Canadian flag on the right.

China has launched tariffs on a wide range of over $2.6 billion in Canadian agricultural and food products in a move to step up tensions in a trade spat between the two countries. The measure is in response to Ottawa’s tariffs on Chinese electric cars, steel and aluminum introduced in October 2024.

Starting March 20, the new tariffs are a 100% tariff on more than $1 billion in imports of rapeseed oil, oil cakes and peas and a 25% duty on $1.6 billion in imports of aquatic and pork products. However, Beijing has particularly excluded canola, providing a possible door for future talks.

China’s Commerce Ministry mocked Canada’s tariffs as violating World Trade Organization (WTO) rules and an ugly act of protectionism. Analysts see the move as a tactical warning, a reminder to Canada of the trade costs of being too cosy with Trumpeconomy.

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This move comes as part of a wider global trade war, with China also being targeted by a US and European Union import ban. Some observers speculate that Beijing may be waiting for its cue, possibly until the potential triumphant leadership change in Canada’s legislatives slated for October 2025 by which ties in diplomatic and trade terms might be reset.

The Canadian government has yet to acknowledge it, but with China as its second largest trading counterpart, tensions could severely affect upcoming exports.

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