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Canadian agriculture stands to suffer significantly due to China’s recent announcement of retaliatory tariffs targeting various products, including canola and pork. These measures, set to take effect later this month, are a direct response to Canadian tariffs imposed last fall on Chinese electric vehicles, steel, and aluminum goods.
Effective March 20, China will impose hefty tariffs of 100 percent on canola oil and peas, along with a 25 percent levy on pork and seafood products. This action closely mirrors the tariffs Canada has placed on select Chinese imports.
Chris Davison, the president of the Canola Council of Canada, expressed grave concerns over these tariffs, stating that their severity will have widespread implications throughout the industry. He highlighted that China is a pivotal market, accounting for nearly $5 billion in exports of Canadian canola.
“The impact will be felt throughout the industry, beginning with farmers who cultivate these crops annually and extending to the companies that supply seeds and agricultural inputs, as well as grain companies, processors, and ultimately exporters,” Davison noted.
He emphasized the urgency of addressing this situation, indicating that the Canadian government would be engaged promptly to find solutions and mitigate the effects of the tariffs.
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In response to the tariffs, Canadian officials, including International Trade Minister Mary Ng, Agriculture Minister Lawrence MacAulay, and Fisheries Minister Diane Lebouthillier, issued a joint statement expressing their disappointment. They emphasized their commitment to support Canadian farmers and fishers, stating, “Our dedicated farmers and fishers offer top-quality food for Canadians and our international partners.”
Saskatchewan Premier Scott Moe criticized the situation, arguing that the province’s canola sector is unjustly caught in the crossfire of tariff disputes related to electric vehicles—measures intended to safeguard North American EV manufacturing, which he contends are overpriced.
The Chinese government is known for heavily subsidizing its manufacturing sectors, enabling companies to sell goods at lower costs, which poses stiff competition to manufacturers in North America and Europe. This strategic advantage allows China to increase its market share while undermining competitors.
As the new tariffs loom, they threaten to compound Canada’s existing trade difficulties, particularly in the context of ongoing tensions with U.S. trade policies under President Donald Trump. This isn’t the first instance of China using Canada’s canola trade as leverage; a similar scenario unfolded in 2019 when Beijing restricted canola export licenses, perceived by many as politically motivated in response to the arrest of Huawei executive Meng Wanzhou at the behest of U.S. officials.
This report combines findings from various sources as of March 8, 2025.
Source
globalnews.ca