China's 73.5% Tariff on Canadian Pea Starch Heats Up Trade Tensions

China will enforce a 73.5% preliminary tariff on Canadian pea starch starting July 1 as a temporary anti-dumping measure. The Ministry of Commerce's investigation revealed dumping activities causing harm to local industries. This decision highlights ongoing trade disputes despite recent diplomatic efforts to ease tensions.

China announced on Tuesday its intention to impose a 73.5% preliminary tariff on Canadian pea starch imports, effective July 1. The move is part of temporary anti-dumping measures following a thorough investigation lasting over ten months.

The Ministry of Commerce concluded that Canadian pea starch was being dumped in the Chinese market, inflicting damage on the domestic sector. The investigation commenced last August, coinciding with China's preliminary tariffs on Canadian canola, intensifying a longstanding trade conflict spurred by Canada's tariffs on Chinese electric vehicles.

The new tariff measure signifies persistent trade tensions even after diplomatic strides made earlier this year. Canadian Prime Minister Mark Carney's January visit to Beijing resulted in agreements to reduce canola tariffs and suspend some agricultural duties, including on Canadian peas.