Tuesday, October 21, 2025

China Escalates Trade War With $2.6 Billion Tariffs On Canada

China has announced tariffs on over $2.6 billion worth of Canadian agricultural and food products. This retaliatory move comes in response to Ottawa’s levies introduced in October—a set of measures mirroring the 100% and 25% import duties Canada had previously imposed on Chinese-made electric vehicles, as well as steel and aluminium products.

The latest tariffs target a diverse range of products, including a 100% duty on more than $1 billion worth of Canadian rapeseed oil, oil cakes, and pea imports, and a 25% duty on $1.6 billion in aquatic products and pork. Notably, canola—a key export for Canada and historically its top agricultural commodity—was deliberately excluded from this list.

“Canada’s measures seriously violate World Trade Organization rules, constitute a typical act of protectionism and are discriminatory measures that severely harm China’s legitimate rights and interests,” a statement from China’s commerce ministry declared.

China remains Canada’s second-largest trading partner—behind only the US—importing $47 billion worth of goods from Beijing. Some analysts speculate that Beijing may be leveraging the current political climate, particularly with Canada’s national election looming by October 20, in hopes that a change in government could foster a reset in trade relations, much like the approach taken with Australia in previous years.

Prime Minister Justin Trudeau has defended his administration’s tariffs, arguing they were necessary to counter what he described as China’s state-directed policy of over-capacity.


Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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