China announced 100% tariffs on Gundam Canola, pork and other food on Saturday in retaliation against Canada's decision last August to demand huge taxes on Chinese electric vehicles, steel and aluminum imports.
China's tariffs, which came into effect on March 20, also issued a clear warning to Canada, and indirectly Mexico – not to cooperate with the United States on trade cooperation. Like the Biden administration, the Trump administration has been asking Canada and Mexico not to enter the U.S. market as a backdoor under the NAFTA.
China's State Council Tariff Commission announced on Saturday that it will impose 100% tariffs on canola oil exports from Canada's largest China and pea exports, and 25% of Canadian pork and seafood. The commission said the measures were a response to Canada's 100% tariff on Chinese electric vehicles and 25% tariffs on Chinese steel and aluminum, which came into effect in October.
China's Ministry of Commerce said in another statement: “China urges Canada to correct its wrong practices immediately, increase restrictions and eliminate adverse effects.”
The Canadian government did not immediately comment.
The statements of the Chinese agency were carefully worded to comply with World Trade Organization rules and did not mention any efforts to affect Canada or Mexico in the current trade discussion with the United States. However, there is no doubt that China's main goal is to dissuade officials in Ottawa and Mexico City from joining U.S. pressure on high-end and Mexican tariffs on Chinese goods.
China Central Television said Chinese tariffs were a powerful countermeasure to Canada’s wrong choice, a strong warning to some countries that intend to impose additional tariffs on China in exchange for the United States not to impose more tariffs on them. ”
Canadian Prime Minister Justin Trudeau announced tariffs on Chinese imports last year in part to protect a large amount of government-backed investment in Canadian electric vehicle factories. But there are growing concerns and complaints from the Biden administration (responded recently by the Trump administration) that Chinese goods are pouring into Canada.
Part of this is due to the influx of China, Canadian steel mills, aluminum producers and other manufacturers rely heavily on sales in the U.S. market, leveraging duty-free shipping. Canada and Mexico have seen a sharp rise in trade surpluses with the United States recently.
By imposing tariffs on a large amount of canola seeds and other agricultural products in Canada, Beijing’s leaders reminded China that China is also a large market.
Last year, Canada exported 3.29 billion Canadian dollars (also known as Rapeseed and Rapeseed and Rapeseed and used in animal feed and cooking), which is 13.4% of Canada's overall exports to China. Last fall, traders were rushing to sell supplies to Chinese stocks and then to Chinese stocks before tariffs took effect, and Canadian Rapeseed exported to China.
The Chinese government said in late September that it would take up to a year to decide how to deal with Canadian tariffs. It decided to act faster after President Trump's 25% tariff on Canadian and Mexico imports this week, but then quickly paused it for cars and many other goods.
China and Canada may have a little more leverage in trade than Mexico. For every dollar Canadian or Mexican goods imported by China, China sells $3 to Canada and nearly $5 to Mexico.
China's exports to Mexico have doubled since 2019, as gasoline-powered Chinese cars have rapidly increased sales in Mexico's U.S. and European manufacturers, but owned factories in Mexico.
Starting in February 2019, China’s actions on Saturday will surely evoke unpleasant memories of Canada’s similar Chinese tariffs on Canadian low rapeseed. In Canadian authorities detained the tariffs of Mann Wanzhou, a senior senior of Chinese telecom giant Wawa, in a U.S. business.
China also imprisoned two Canadians under harsh conditions, while Canada allowed Ms. Meng to live in a Vancouver mansion while awaiting her legal status decision. The United States, Canada and China eventually reached a deal in which all three detainees were allowed to return to their home countries, but during the dispute, Chinese public opinion caused a huge change.
Amy Chang Chien Contributed to the research.
