Meanwhile, our friends to the north are addressing their own notable trade friction with China. They are very much zeroing in on the tariffs placed on Canadian canola. This follows China’s introduction of hefty tariffs on Canadian agricultural products in retaliation for Canada’s 100 percent tariff on Chinese electric vehicles, enacted in October of last year.
Across the Pacific, China has slapped an eye-popping 76 percent tariff on Canadian canola seed imports. It targets canola oil, meal, and peas with a jaw-dropping 100 percent tariff. Quite a notable trade dispute indeed, the impact is even more profound. Canada’s canola export market to China is valued at approximately $4.9 billion. China has now hit specific Canadian pork, fish, and seafood products with a 25 percent tariff. This move pushes their current trade tariffs deeper into Canada’s agricultural sector.
Last week, the Canadian federal government justified its new tariff on Chinese EVs. They claim that China is dumping its EV industry on American shores by heavily subsidizing its automakers, undercutting fair competition with lower-priced vehicles. In a tit-for-tat move, China slammed Canada’s actions as “protectionist,” arguing that such moves sabotage mutual trade between the two countries.
In recent developments, Ontario Premier Doug Ford has emphasized the importance of maintaining Canada’s 100 percent tariff on Chinese electric vehicles. He expressed his views in a letter addressed to Mark Carney, who recently met with Saskatchewan Premier Scott Moe to discuss the implications of China’s tariffs on Canadian canola.
Yet Moe highlighted the complexity of that situation. He emphasized that addressing the issue of China’s tariffs goes beyond just removing China’s EV tariff. This simple sentiment belies the complicated realities of international trade and the need for a careful, tailored approach to negotiations.
Earlier this month, Liberal MP Kody Blois, alongside Moe, visited Chinese officials in the country’s trade, foreign affairs, and customs departments. Blois described these meetings as a positive outcome of renewed engagement between Canada and China.
“I would characterize the meetings as positive. It was an opportunity for re-engagement,” – Kody Blois
Blois is hopeful that these types of diplomatic overtures will allow for greater engagement by federal ministers traveling to China. He stated,
“You’re going to see an increased presence of federal ministers visiting China, engaging with their counterparts, and I think there’s ultimately an opportunity for more dialogue on the trade irritants that exist between our two countries,” – Kody Blois
Mexico has sprung into the fray by slapping tariffs of up to 50 percent on 1,400 items from China and other Asian countries. This latest move adds to an international trade environment that’s already become complicated and contentious.
