China Slaps Harsh Tariffs On Canada As Trade Tensions Mount

Canada’s economy is facing a new challenge as China enacts steep tariffs on key agricultural exports — a direct response to Ottawa’s trade restrictions on Chinese goods. The latest penalties will affect billions in exports and add further strain to Canada’s already tense relationship with Beijing.

Starting March 20 — Chinese authorities will impose a 100% tariff on Canadian rapeseed oil, oil cakes and peas. Pork and aquatic products will face a 25% duty. These restrictions were announced months after Canada introduced tariffs on Chinese-made electric vehicles, steel and aluminum — following the lead of the U.S. and European Union.

China’s move comes as President Donald Trump keeps the pressure on Canada with his own tariff policies. While some duties were temporarily suspended — a full reimplementation remains possible. His administration’s strong stance on trade has put Canada in a difficult position — particularly as it tries to navigate tensions with both the U.S. and China.

Beijing has criticized Canada’s actions — accusing it of undermining fair trade and implementing discriminatory policies. Chinese officials have warned that if Canada does not reverse course — additional measures may follow. This type of economic retaliation is not new—Canada previously faced similar penalties in 2019 when China restricted rapeseed oil imports following the arrest of a Huawei executive.

China remains Canada’s second-largest trading partner — with $47 billion in exports in 2024. These new restrictions will likely create further economic headaches for Canadian producers. Meanwhile — with an election approaching — the Trudeau government may be forced to address the fallout of its trade decisions.

This latest round of tariffs underscores how Canada’s alignment with Western trade measures against China is coming at a cost. As trade battles continue — industries on both sides are bracing for further instability.

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