China Hits Back: New Tariffs Escalate Canada Trade Battle

China retaliates against Canadian tariffs on electric vehicles and metals by imposing duties on Canadian agricultural and food products, escalating the trade tensions initiated by U.S. protectionist measures. The new tariffs target rapeseed oil, oil cakes, pea imports, aquatic products, and pork, affecting Canada-China trade relations.

In a development that escalates the ongoing trade tensions, China has announced new tariffs on Canadian agricultural and food products. This move, revealed by China's commerce ministry on Saturday, is a direct response to Canada's October imposition of tariffs on Chinese-made electric vehicles and metal products including steel and aluminum.

Effective March 20, China will enforce a 100% tariff on Canadian rapeseed oil, oil cakes, and pea imports, alongside a 25% duty on Canadian aquatic products and pork. This escalation adds another layer to the trade war predominantly driven by policies from the Trump administration, which also targeted both Canada and China with protectionist tariffs.

Canadian Prime Minister Justin Trudeau justified the levies, mentioning that they counter China's state-led overcapacity strategies, following similar actions by the USA and the European Union. Despite these tensions, China remains Canada's second-largest trading partner, with the United States significantly leading in trade volume.

(With inputs from agencies.)