China has decided to impose retaliatory tariffs on key imports from Canada, including canola oil, pork, and seafood, amid the ongoing trade war. A 100 percent tariff has been established on canola oil and meal, as well as on pea products, along with a 25 percent levy on imports of pork and certain types of seafood. These changes will take effect next Thursday, March 20.
In response to this move, Canada had previously imposed 100 percent tariffs on electric vehicles and 25 percent on steel and aluminum from China last year. These actions triggered an anti-dumping investigation by the Chinese government on imports of canola from Canada, in addition to filing a complaint with the World Trade Organization.
Canola oil is a particularly relevant product in trade between China and Canada, given the significant volumes involved. Canada is one of the world's leading producers of canola and has exported considerable amounts to China in recent years. Despite the expectations of 1.75 million tons of canola oil imports this season by China, the country imports larger amounts of the raw oilseed.
Pork imports from China have declined in recent years due to an oversupply domestically and economic weakening. Meanwhile, in North America, the tariff war between the United States, Mexico, and Canada has shown signs of escalation and pause, with President Donald Trump imposing and then postponing tariffs on Canada and Mexico.
In this scenario, China is in a vulnerable position in the event of a global trade war, as it sends a significant portion of its exports through other countries to the United States and other markets. For its part, Mexico has announced the review of tariffs on Chinese imports while Canada has expressed its willingness to collaborate with the White House to avoid distortions in the North American market.
