China hits Canada with tariffs on food and agriculture in trade dispute

China has announced tariffs on over $2.6 billion worth of Canadian agricultural and food products, escalating trade tensions with Ottawa. The move follows Canada's October levies on Chinese goods and signals Beijing’s pushback against Western trade restrictions.

The Chinese commerce ministry said the tariffs, set to take effect on March 20, will match the 100% and 25% import duties Canada imposed on Chinese electric vehicles, steel, and aluminium. China will apply a 100% tariff on over $1 billion of Canadian rapeseed oil, oil cakes, and peas, alongside a 25% duty on $1.6 billion worth of aquatic products and pork.

Analysts view the timing as a strategic warning, with China reminding Canada of the risks of aligning too closely with U.S. trade policy. The decision also comes as Canada approaches a national election, raising speculation that Beijing may be positioning itself for a reset in relations depending on the outcome.

China, Canada’s second-largest trading partner, had already launched an anti-dumping investigation into Canadian canola imports last year. While canola was excluded from the latest tariffs, experts suggest Beijing may be leaving room for negotiations.

The Canadian government has not yet responded to the announcement, while trade officials warn that the new tariffs could significantly impact key export industries, particularly pork and canola.

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