- China to impose tariffs on Canadian agricultural products from March 20.
- Move retaliates against Canada’s tariffs on Chinese goods last October.
- 100% tariffs to be applied on rapeseed oil, oilseed meal, and peas.
- 25% tariffs to affect aquatic products and pork.
- Canola excluded, signaling possible room for negotiations.
On March 8, 2025, China announced fresh tariffs on Canadian agricultural and food products in retaliation for Canada’s earlier levies on Chinese imports. These new duties will take effect on March 20.
The Chinese Ministry of Commerce stated that these measures directly respond to Canada’s import duties imposed in October 2024. At the time, Canada levied 100% and 25% tariffs on Chinese electric vehicles, steel, and aluminum products, aligning with similar actions taken by the United States and the European Union.
China’s retaliatory tariffs specifically target key Canadian exports, imposing 100% tariffs on rapeseed oil, oilseed meal, and peas, while applying a 25% tariff on aquatic products and pork. Notably, canola, a major Canadian export, is excluded from the tariff list.
China had previously restricted canola imports due to an anti-dumping investigation last year. Analysts speculate that this exclusion could indicate China’s willingness to keep trade discussions open.
Impact on Canada
China is Canada’s second-largest trading partner after the United States. In 2024, Canada exported $47 billion worth of goods to China. The new tariffs could significantly affect Canada’s agricultural sector, particularly given China’s importance as a buyer.
The Canola Council of Canada reports that more than half of Canada’s canola exports, valued at $3.7 billion in 2023, were shipped to China. While canola remains unaffected for now, other agricultural sectors face a potential economic hit.
Trade experts suggest that China’s latest move is not just economic retaliation but also a strategic warning to Canada about the risks of aligning too closely with Western trade policies.
Dan Wang, China director at Eurasia Group in Singapore, noted that these tariffs send a clear message: Canada must consider the consequences of siding with the U.S. and EU on trade restrictions against China.
Evolving trade dispute
The Canadian embassy in Beijing has yet to issue an official statement. However, in August 2024, Prime Minister Justin Trudeau defended Canada’s tariffs on Chinese goods, arguing that they were meant to counter China’s state-backed industrial overproduction policies.
China’s retaliatory tariffs on Canadian agricultural products mark an escalation in trade tensions between the two nations. While canola’s exemption may leave room for future negotiations, the immediate economic impact on Canadian farmers and exporters could be severe.
As tensions rise, both countries face critical decisions on how to navigate this evolving trade dispute.