As tensions escalate with tariffs from the Trump administration, a trade war seems to be brewing between Canada and China. According to a Reuters report, following Canada’s imposition of import duties on Chinese electric vehicles, steel, and aluminum products, China responded on Saturday by announcing tariffs on certain Canadian agriculture and food products.
China's Ministry of Commerce stated that from March 20, a 100% tariff would be imposed on Canadian canola oil, oilcake, and peas, while aquatic products and pork would face an additional 25% tariff. This move by China follows Canada's tariff on Chinese electric vehicles, steel, and aluminum products.
Previously, the U.S. announced tariffs on China, Canada, Mexico, and India, with a 20% tariff on China and a 25% tariff on Canada and Mexico. Additionally, President Donald Trump indicated reciprocal tariffs on India, effective from April 2.
In response, Canada, Mexico, and China also declared tariffs against the U.S. These nations are implementing tariffs on imports from America. Canadian Prime Minister Justin Trudeau announced a tariff on $30 billion worth of U.S. imports, including a 25% surcharge on American products.
Trudeau launched a sharp critique against Trump, accusing him of trying to harm Canada's economy. Adding to the tension, Doug Ford, the Premier of Ontario, warned of potential power outages to the U.S. Ontario supplies electricity to around 1.5 million homes across Minnesota, Michigan, and New York.
Similarly, Mexico has announced tariffs on American products. Meanwhile, China has shown willingness for escalation, imposing tariffs equivalent to those placed by the U.S. on Chinese goods.
The fierce scramble over tariffs between Canada and China is creating conditions resembling a trade war. Experts warn that if other nations announce similar tariffs, it could lead to severe consequences, including increased global inflation and adverse impacts on worldwide stock markets.
