China Imposes Tariffs on Canadian Canola, Pork, Seafood

China has announced a series of retaliatory tariffs on Canadian goods following the latter’s decision to impose steep duties on Chinese EVs, steel, and aluminum. The move escalates trade tensions between the two countries, further complicating their already strained economic relations.

Canada’s Tariff Measures

In June 2024, Canada launched consultations on potential tariff measures in response to alleged unfair competition in the EV sector. This followed actions by its international partners. The United States had announced a 100% tariff on Chinese EVs and hybrids effective Aug. 1, 2024, while the European Union imposed provisional anti-subsidy duties on Chinese-made EVs starting July 4. The Canadian government then in September 2024, said that it would implement a 100% tariff on Chinese EVs starting Oct. 1, 2024. Additionally, a 25% tariff was imposed on Chinese steel and aluminum products starting on Oct. 22, 2024. According to Canada, these measures aim to protect domestic industries from what it perceives as unfair trade practices by China.

Beijing has strongly condemned these tariffs, describing them as discriminatory and a violation of World Trade Organization (WTO) rules. The Chinese government argues that Canada’s unilateral imposition of these tariffs disregards objective facts and constitutes a clear act of trade protectionism that undermines China-Canada trade relations.

China’s Retaliatory Tariffs

In response, the State Council Tariff Commission of China announced countermeasures against Canadian imports. Effective March 20, 2025, China will impose:

• A 100% tariff on Canadian rapeseed oil, oil cake, and peas

• A 25% tariff on Canadian aquatic products and pork

The tariffs will be levied in addition to existing applicable tariff rates, and China has clarified that the current bonded and tax reduction policies will remain unchanged. These countermeasures aim to offset the impact of Canada’s restrictions on Chinese goods and to protect China’s trade interests.

Chinese authorities are also urging Canada to reconsider its stance on trade relations. “In disregard of China’s repeated persuasion, Canada has insisted on taking discriminatory restrictive measures on some Chinese imports. This seriously violates WTO rules, disrupts normal trade order, and gravely harms China’s lawful rights and interests. The countermeasures China has taken are fully necessary, justified, reasonable, and lawful,” says Foreign Ministry Spokesperson Mao Ning.

China has called on Canada to respect WTO principles and take immediate steps to reverse what it considers wrongful practices. According to Ning, China hopes that Canada will “form an objective and rational perception of China, pursue a positive and pragmatic policy, and work toward the improvement and growth of bilateral relations.”

Canada’s Response to China’s Tariffs

In response to China's announcement, Canadian authorities issued a joint statement: “Canada does not accept the premise of China’s investigation, nor its findings. We are deeply disappointed with China’s announced measures.”

The statement adds that “Canada remains open to engaging in constructive dialogue with Chinese officials to address our respective trade concerns.”

According to the statement, canola is Canada’s second-largest acreage crop, with over 8.4 million ha produced annually, it generated US$13.6 billion in farm cash receipts in 2023. Canadian exports of canola meal to China represented US$920.9 million in 2024, while exports of canola oil represented about US$21 million. Canada’s pea exports (dried and fresh) to China amounted to US$303.6 million in 2024. In 2024, Canada exported US$1.3 billion in fish and seafood products to China and in 2024, Canada exported US$468.6 million in pork products to China.

Canola Council of Canada’s Response

The Canola Council of Canada (CCC) expressed deep concern over China’s decision to impose new tariffs on Canadian canola oil and meal, effective March 20, 2025. Chris Davison, President and CEO, CCC, warns that these tariffs will have a devastating impact on canola farmers and the broader value chain amid increasing geopolitical uncertainty. He urges Canada’s government to engage with China immediately to seek a resolution. Similarly, Rick White, President and CEO, Canadian Canola Growers Association (CCGA), highlights the unprecedented trade uncertainty farmers now face, emphasizing the need for government support to offset financial losses.

China is Canada’s second-largest canola market, with 2024 exports valued at nearly US$5 billion. The CCC and CCGA will continue collaborating with the government and industry stakeholders to address the issue, stressing canola’s critical role in Canada’s economy and the livelihoods of 40,000 farmers.

Background: China’s Anti-Discrimination Investigation

On Sep. 3, 2024, China’s Ministry of Commerce launched an anti-discrimination investigation into Canada’s tariff measures. Additionally, China announced anti-dumping investigations into rapeseed imports and related chemical products from Canada, citing concerns about market distortions caused by Canadian exports.

China accused Canada of unfair trade practices regarding rapeseed exports. According to the Chinese Ministry of Commerce, Canadian rapeseed exports to China surged 170% year-on-year in 2023, reaching US$3.47 billion. The ministry claimed that declining prices and increased exports have inflicted losses on Chinese rapeseed producers, prompting the launch of an anti-dumping investigation on Sep. 3, 2024.

On Sep. 9, 2024, Canada’s Minister of Agriculture and Agri-Food Lawrence MacAulay responded to China’s anti-dumping investigation into Canadian canola seed exports, expressing deep concern over the probe. 

“Our canola producers work tirelessly to deliver top-quality products to Canadians and the world. Their products meet the highest standards, our inspection systems are robust, and we adhere to rules-based trade. We remain committed to ensuring fair market access for our exporters, farmers, and producers,” says MacAulay. He adds that the crop generates US$13.6 billion in farm cash receipts annually and contributes US$29.9 billion to the economy, supporting over 207,000 jobs.