In response to the tariffs on Chinese electric cars and steel implemented in October, Beijing has announced new tariffs on Canada. These tariffs will affect over $2.6 billion worth of Canadian agricultural and food products starting on March 20.
Beijing’s decision to impose retaliatory measures followed an anti-dumping investigation, which found that Canada’s restrictive measures against certain Chinese products had disrupted normal trade and harmed the legitimate rights and interests of Chinese businesses.
On the other hand, Canada stated that the tariffs on Chinese goods were implemented after the United States and the European Union took similar actions against Chinese electric cars and other products. Western governments argue that China’s subsidies provide its industry with an unfair advantage, which is why these measures are deemed necessary.
Analysts indicate that China delayed response to Ottawa’s October tariffs likely reflects both capacity constraints and a strategic approach. The Ministry of Commerce is currently under pressure while managing ongoing trade disputes with the United States and the European Union, which has pushed Canada lower on its priority list. Consequently, it has taken months for China to address Canada’s tariffs.
China remains Canada’s second-largest trading partner, following the United States. According to Chinese customs data, Canada exported $47 billion worth of goods to China in 2024, underscoring the importance of this bilateral trade relationship.
