China’s Ministry of Finance slapped retaliatory tariffs on key Canadian exports, including rapeseed oil, pork, and seafood, escalating trade tensions between Beijing and Ottawa. The long-anticipated measures come in response to Canadian tariffs imposed last year on Chinese-made electric vehicles, steel, and aluminum. Escalating trade wars add growth scares and sparked turmoil for global equity markets as President Trump advances his “America First” agenda, reshaping economic alliances and complex supply chains in friend-shoring and reshoring efforts.
On Saturday, the Ministry of Finance issued a statement announcing that Beijing would enact retaliatory measures in response to the Canadian government’s 100% tariffs on electric vehicles imported from China, effective October 1, 2024, and 25% tariffs on Chinese steel and aluminum products, effective on October 22, 2024.
MoF said these tariffs are “protectionist practices” that “seriously violate the rules of the World Trade Organization” and “damage China’s legitimate rights and interests.”
In response, Beijing imposed a 100% tariff on rapeseed oil, oil cake, and peas and a 25% tariff on pork and seafood products.
Canada is one of the world’s largest rapeseed producers, so Beijing’s tariffs on these products directly hits North America’s agricultural export market.
Canola futures in New York fell 6% by the exchange limit on Sunday evening.
“Canadian canola farmers are facing an unprecedented situation of trade uncertainty from our two largest export markets only weeks before planting begins,” Rick White, the president and CEO of the Canadian Canola Growers Association, said in a statement, quoted by Bloomberg.
Anilkumar Bagani, research head of Mumbai-based vegetable oil broker Sunvin Group, told Reuters:
“China has alternative origins for rapeseed oil such as Russia and the EU and also the Chinese import duty hike could pressure Canadian canola prices, resulting in a sharp decline in product prices.
“It also needs to be noted that China has huge rapeseed oil stocks at the moment and the crush capacity utilisation is also considerably high.”
The trade dispute comes as globalist Mark Carney prepares to take over as leader of Canada’s ruling Liberal Party and succeed Justin Trudeau as prime minister, at a time when the country to America’s north is experiencing significant political and economic turmoil.
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