Improving trade tensions between China and Canada have reached a boiling point. Last week, Canada announced tariffs on Chinese electric vehicles, steel, and aluminum. Now, China is fighting back with a probe into Canadian canola imports, which could lead to tariffs on a crucial Canadian export.
The investigation, announced by China’s Ministry of Commerce, cites dumping concerns. China claims Canadian canola imports have surged 170% since 2023, while prices have continuously fallen. It, China argues, is evidence of unfair trade practices.
Canada’s agriculture minister, Lawrence MacAulay, calls the probe “deeply concerning.” He vows to defend and support Canadian farmers, who rely on a rules-based global trading order.
This latest escalation comes as Western countries increasingly erect barriers against Chinese-made electric cars. The US and European Union have taken similar measures, citing concerns over Chinese subsidies and dumping practices.
China has launched investigations into European pork and dairy products and previously blocked Canadian grain exports. The canola probe is just the latest salvo in a growing trade war.
Canada exports over 90% of its canola, with China being the second-largest market. The stakes are high, with Chinese imports worth $3.7 billion last year.
As tensions rise, both sides are digging in. China’s Ministry of Commerce spokesperson says the country will take all necessary measures to safeguard Chinese companies’ rights and interests.
Meanwhile, Canadian Prime Minister Justin Trudeau says countries like China have given themselves an unfair advantage in the global marketplace. Western countries allege Chinese firms benefit from subsidies and government help, allowing them to undercut competitors.
The trade dispute shows no signs of slowing. With both sides refusing to back down, the impact on Canadian farmers and Chinese companies remains uncertain. One thing is clear: the trade war between China and Canada has only just begun.
