Canada now faces tariffs on Canadian-origin goods issued by two major trading partners: the United States and China. On March 8, China’s Ministry of Commerce (MOFCOM) announced retaliatory tariffs on Canadian agricultural and seafood products in response to Canada’s Fall 2024 implementation of a 100% surtax on Chinese origin EVs and 25% surtax on Chinese origin steel and aluminium products.
China’s retaliatory tariffs follow its conclusion of an anti-discrimination investigation against Canada that was initiated in September 2024. China determined that Canada imposed discriminatory trade measures against China, which disrupted normal trade practices and caused negative economic impacts on the Chinese domestic economy.
China’s Tariff Commission of the State Council accordingly announced 25% and 100% retaliatory tariffs against Canada-origin products, effective from March 20, 2025.
China has implemented 100% tariffs on the following Canadian-origin products:
- certain rapeseed oils;
- rapeseed oil cake and other solid residues
- Dregs cake and other solid residues from other oilseeds
- Fresh or frozen peas
- Seed peas
- Dried peas for non-growing purposes
China has imposed 25% tariffs on the following Canadian-origin products:
- seafood products including greenland halibut, frozen crayfish, frozen crabs, shrimps, prawns, clams, sea cucumbers and lobsters; and
- pork products including fresh or frozen pork products.
These measures will impact approximately CAD 3.7 billion worth of agricultural and food products exported from Canada to China on an annual basis and add to further import measures implemented by China and ongoing investigations against Canadian-origin goods, including SPS import measures on certain beef and poultry products and the anti-dumping investigation focused on Canadian origin canola seeds initiated by MOFCOM in Fall 2024.
Baker McKenzie is closely following the implementation of China’s tariffs against Canadian origin products and is poised to assist Canadian exporters and Chinese importers on assessing the impact of these tariffs through its global customs practices in Toronto, Canada and Shanghai, China.
Frank Pan is a partner and Tina Li is an associate of FenXun Partners who is a premier Chinese law firm. FenXun established a Joint Operation Office with Baker McKenzie in China as Baker McKenzie FenXun which was approved by the Shanghai Justice Bureau in 2015.
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