Canada is no stranger to the global trade disputes that dominate headlines. However, while government officials have passionately spoken out against U.S. tariffs imposed under Donald Trump, their response to China’s retaliatory 100% tariffs has been, at best, muted.
This raises questions about Ottawa’s trade strategy and priorities when dealing with two of the world’s largest economies.
Over the past few years, tariffs have become a regular tool in international trade disputes.
Under Trump’s administration, the U.S. introduced a 25% tariff on steel and aluminum imports, affecting many trade partners, including Canada. Ottawa responded swiftly, retaliating with $20 billion in tariffs on U.S. goods.
Fast-forward to today’s clash with China. Beijing announced 100% tariffs on Canadian exports, including critical goods like canola and pork. These punitive measures were imposed in retaliation for Canada’s earlier tariffs on Chinese electric vehicles and steel.
The Liberal government has stayed quiet about China’s recent announcement of 100% tariffs, a noticeable shift from their strong responses to US tariffs in the past.
China’s Criticism of the Liberal Government
China’s Ministry of Finance criticized Canada for imposing tariffs on Chinese goods, calling them discriminatory and a violation of World Trade Organization rules. In their statement, they urged Canada to reverse its actions to restore trade relations.
Despite the potential economic impact, the Canadian government has largely remained silent. The only response came in the form of a joint statement from Trade Minister Mary Ng, Agriculture Minister Lawrence MacAulay, and Fisheries Minister Diane Lebouthillier.
The statement expressed disappointment with China’s decision but did not indicate any retaliatory measures.
According to government data, Canada exported $921 million worth of canola, $304 million worth of peas, $1.3 billion worth of fish and seafood, and $469 million worth of pork to China in 2024. These tariffs could significantly hurt Canadian farmers, fishers, and businesses.
The lack of a strong response raises questions about why Canadian leaders, who were ready to confront the United States, appear reluctant to take a firm stance against China.
At a press briefing on Monday, Chinese Foreign Ministry spokesperson Mao Ning congratulated Carney on his election. She reaffirmed China’s commitment to building strong ties with Canada based on mutual respect, equality, and shared benefits.
Mao expressed hope that Canada would collaborate with China to improve and grow the relationship between the two countries.
China’s 100% Tariffs
In a separate matter, Mao defended China’s decision to introduce additional tariffs on certain Canadian imports. This move, announced on Saturday, stems from an anti-discrimination investigation. She described the action as “necessary, justified, reasonable, and lawful.”
Mao pointed out that despite China’s repeated attempts to address the issue, Canada continues to enforce discriminatory measures on certain Chinese goods. She argued these actions violate World Trade Organization rules, disrupt regular trade activities, and infringe on China’s rights.
She urged Canada to take real steps to correct its approach. Mao stressed the importance of creating a fair, non-discriminatory, and stable environment for businesses in both countries to engage in normal trade and cooperation.
Canada announced tariff hikes last year on Chinese electric vehicles, steel and aluminum, which prompted China’s anti-discrimination probe in September.
The decision on Saturday came after China’s first anti-discrimination probe into foreign countries and regions, which found that Canada’s trade restrictions on certain Chinese products constitute discriminatory practices.
The new tariffs, effective on March 20, will include a 100 percent duty on rapeseed oil, oil cakes, and peas imported from Canada, while aquatic products and pork will face an additional 25 percent tariff.
