Canada’s Economy Hit Hard As China Imposes Steep Tariffs

China is turning up the pressure on Canada with a fresh wave of tariffs on agricultural exports — responding to trade restrictions Canada imposed on Chinese goods months earlier. The move will impact billions of dollars in trade — worsening already tense economic relations.

Starting March 20 — China will introduce a 100% tariff on Canadian rapeseed oil, oil cakes and peas. Pork and aquatic products will face a 25% tariff. These measures follow Canada’s October decision to implement tariffs on Chinese-made electric vehicles, steel and aluminum — aligning with similar trade policies from the U.S. and European Union.

Chinese officials accused Canada of damaging trade relations and warned that additional penalties could follow if Ottawa does not back down. In a statement — China’s Ministry of Commerce said the restrictions were necessary to counteract Canada’s economic policies — which it claims unfairly target Chinese industries.

President Donald Trump’s firm stance on trade has already placed Canada in a difficult position. While some tariffs on Canadian and Mexican goods were temporarily lifted — the possibility of reimposing them remains on the table. Trump’s tariffs on China have also forced other nations — including Canada — to take sides in the trade dispute.

Canada exported $47 billion in goods to China in 2024 — making Beijing its second-largest trading partner. These new tariffs will hit the agricultural sector hard — with producers now scrambling to adjust to shifting trade conditions.

As Canada’s national elections approach — Trudeau’s government faces mounting criticism over how it has handled international trade. The economic impact of these new tariffs is likely to become a key issue in the months ahead.

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