China announced plans on Tuesday to launch an anti-dumping investigation into canola imports from Canada, following Ottawa’s recent decision to impose a 100% tariff on Chinese electric vehicles (EVs) and additional tariffs on imported steel and aluminum.
Read More: Canada Imposes 100% Tariff on Chinese-Made Electric Vehicles
In a statement released online, China’s commerce ministry expressed dissatisfaction with Canada’s actions and confirmed the initiation of an anti-dumping probe into Canadian canola imports. The ministry noted that Canadian canola exports to China had surged to US$3.47 billion in 2023, while prices had dropped, leading to suspicions of dumping—selling products at unfairly low prices. The ministry claimed that China’s domestic canola-related industries have suffered losses due to what it described as unfair competition from Canada.
In addition to the canola investigation, China also plans to launch a similar probe into Canadian chemical products, based on requests from its domestic industries. The ministry stated that China is committed to taking all necessary measures to protect the rights and interests of its enterprises.
China’s response comes after Canadian Prime Minister Justin Trudeau announced a 100% tariff on Chinese EVs, citing concerns over Beijing’s practices related to environmental and labor standards. This surtax, which adds to existing import duties of 6.1%, will take effect on October 1 and will apply to Chinese electric and certain hybrid vehicles, including passenger cars, trucks, buses, and delivery vans. Canada will also limit eligibility for EV incentives to vehicles manufactured in countries that have free trade agreements with Canada, which means China will be excluded.
A separate surtax on Chinese steel and aluminum products will come into force on October 15.
The trade dispute between Canada and China is the latest in a series of tensions between the two nations, which have clashed over various issues, including trade, technology, and human rights. Relations between the countries have been strained since 2018, when Canada detained a senior executive from Chinese tech giant Huawei, prompting China to arrest two Canadian citizens in retaliation.
