China Retaliates Against Canada With Steep Tariffs On Agriculture

China has fired back against Canada with new trade restrictions — hitting major agricultural exports with heavy tariffs. The latest move intensifies an already fraught trade relationship and threatens billions of dollars in Canadian exports.

The tariffs — set to take effect on March 20 — will impose a 100% duty on rapeseed oil, oil cakes and peas — while pork and aquatic products will face a 25% tariff. This action follows Canada’s decision last year to introduce its own tariffs on Chinese electric vehicles, steel and aluminum.

Beijing’s response underscores growing frustration with Western nations imposing trade barriers on Chinese industries. The Chinese Customs Tariff Commission called Canada’s actions discriminatory and warned that further measures could be taken if Ottawa does not reverse course.

President Donald Trump’s stance on trade has played a key role in shaping these developments. His administration’s tariffs on China, Canada and Mexico have led to ripple effects across global trade. Some of these tariffs were temporarily lifted — but the full reimplementation of U.S. trade restrictions remains a possibility.

China has previously used trade as a tool of retaliation. In 2019 — it blocked Canadian rapeseed oil imports after the arrest of a Huawei executive. Now — with Canada’s economy already facing pressure — the impact of these new tariffs could be severe.

China remains Canada’s second-largest trading partner — with $47 billion in exports sent there in 2024. With a national election approaching — Canada’s handling of trade disputes could play a major role in shaping the political landscape.

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