The Canada–China trade war refers to an ongoing series of escalating tariff impositions and retaliatory trade measures between Canada and the People's Republic of China that began in late 2024. The trade war emerged alongside other ongoing trade wars both countries were involved with, including the China–United States trade war and the 2025 United States trade war with Canada and Mexico.[1][2]
Background
Trade relations between China and Canada deteriorated substantially beginning in August 2024, when Canada announced plans to implement substantial tariffs on various Chinese manufactured goods, following similar protectionist measures previously enacted by the United States and European Union. These Western nations collectively cited concerns regarding Chinese government subsidies providing unfair competitive advantages to Chinese industries.
Chronology
2024
- October 1: Canada instituted a 100% tariff on electric vehicles manufactured in China, mirroring similar protectionist measures previously enacted by the United States and European Union.[1][3]
- October 15: Canada implemented an additional 25% tariff on Chinese steel and aluminum products, citing concerns about market distortion and unfair competition.[1][4]
2025
- March 8: China's Customs Tariff Commission of the State Council announced retaliatory tariffs on several Canadian agricultural exports, following an "anti-discrimination probe".[1] The products targeted represented significant export sectors for Canadian agricultural producers, particularly in western Canadian provinces where rapeseed production forms a substantial component of agricultural output.[5]
- March 20: Planned implementation date for Chinese tariffs on Canadian goods, including a 100% tariff against Canadian rapeseed oil, peas, and oilcakes, in addition to a 25% tariff on Canadian "aquatic products" and pork.[1]
Reactions
In Canada
The Government of Canada justified its tariff implementation as necessary to protect domestic industries from what it considered to be anti-competitive practices and market distortion by China.[1]
In China
The Government of China rejected Canada's justification for the tariffs, and instituted retaliatory tariffs following an "anti-discrimination probe" conducted by Chinese officials. The investigation reportedly concluded that Canada's earlier restrictive measures against Chinese products had been implemented without proper investigative procedures.[5]
On March 8, 2025, China's customs authorities released a statement characterizing Canada's actions as having disregarded "objective facts and World Trade Organization rules". The statement specifically outlined what it referred to as discriminatory measures specifically targeting China that infringed on the nation's economic interests while undermining bilateral relations.[1]
See also
- 2025 United States trade war with Canada and Mexico
- China–United States trade war
- Canadian economic crisis (2022–present)
References
- ^ a b c d e f g Meredith, Sam (2025-03-08). "China to impose retaliatory tariffs on some Canadian products as trade war heats up". CNBC. Retrieved 2025-03-08.
- ^ "Trump's trade war draws swift retaliation with new tariffs from Mexico, Canada and China". AP News. 2025-03-04. Retrieved 2025-03-08.
- ^ Canada, Department of Finance (2024-08-26). "Canada implementing measures to protect Canadian workers and key economic sectors from unfair Chinese trade practices". www.canada.ca. Retrieved 2025-03-08.
- ^ Chiang, Sheila (2024-08-27). "Canada to slap 100% import tariffs on Chinese electric vehicles over 'unfair' competition". CNBC. Retrieved 2025-03-08.
- ^ a b "China imposes retaliatory tariffs on Canadian farm and food products". AP News. 2025-03-08. Retrieved 2025-03-08.
