The current trade tensions between the two countries have significantly escalated after China indicated that it would impose large tariffs on a number of Canadian imports. This action is a direct reaction to Canadian October 2024 decision to put tariffs on steel, aluminum and electric vehicle products made in China, the duties, which are scheduled to go into effect on March 20, 2025, include a 25% tax on Canadian seafood and pig products and a 100% levy on Canadian rapeseed oil, oil cakes and peas.
Due to U.S policies and the fundamentals of global trade the trade dispute between China and Canada has been getting more intense over the past year. In line with comparable actions by the United States and the European Union, Canada imposed duties on Chinese imports of steel, aluminum and electric vehicles in October 2024, these measures were prompted by worries about China's state-sponsored overcapacity policies and unfair competition practices.
It is anticipated that Canadian exporters, especially those in the agriculture industry, will be significantly impacted by the tariffs imposed by China, a vital part of Canadian agricultural trade, rapeseed oil, oil cakes and peas are among the country top exports to China. Canadian farmers may experience stockpiling and financial losses as a result of the 100% tariff on these goods which will significantly restrict their access to the Chinese market and may cause them to ship to other nations.
Chinese strategy to oppose what it views as Canadian protectionist actions is reflected in its decision to implement these duties, Canada measures have been denounced by the Chinese Ministry of Commerce as discriminatory practices against Chinese businesses and a violation of World Trade Organization (WTO) regulations, the United States, China, Canada and Mexico are all slapping tariffs on each other goods, contributing to a wider global trade battle.
Due to the fact that these trends are contributing to increased tensions in global commerce, the international community is keeping a careful eye on them, with tariffs imposed by President Donald Trump administration on imports from Canada and Mexico some of which have been suspended or modified, the United States has been a major actor in these tensions. Canada and other countries are cautioned by Chinese tariffs on Canadian goods not to support American trade policies that China perceives as protectionist.
How both nations handle these problems will determine the future of commercial relations between China and Canada. Canada has been encouraged by China to lift its tariffs and correct what it views as wrongdoing. Nonetheless, Canada's position is probably impacted by its support for EU and US policies meant to counteract China's alleged unfair trade practices. Further economic strain and political difficulties between China and Canada, as well as with other countries participating in the global trade battle, could result from the current trade war.
