By John Q. Hosedrinker 
China has imposed a preliminary 75.8 per cent tariff on Canadian canola, following an anti-dumping investigation launched last year in response to Canada’s tariffs on Chinese electric vehicles. The Chinese Ministry of Commerce cited the “dumping” of Canadian canola as the reason, claiming it harms the domestic canola oil market. This move follows Canada’s earlier imposition of a 100 per cent tariff on Chinese electric vehicles, which is set for review. The Canola Council of Canada maintains that Canadian canola trade with China adheres to international rules.
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China announces 75.8% tariffs on Canadian canola, and it’s hard not to react with a mix of disbelief and frustration. It feels like a punch in the gut, especially for Canadian farmers who depend on canola exports. The fact that this is a 75.8% tariff – that .8% is a real stinger, isn’t it? – just adds insult to injury. It’s a steep price to pay, and the ripple effects will likely be felt throughout the agricultural sector.
The obvious question that pops to mind is, why? The consensus seems to be that this is, at least in part, retaliation for Canada’s own tariffs, specifically on Chinese electric vehicles. Canada slapped a 100% tariff on those EVs, and now China is responding in kind, targeting a major Canadian export. It’s like a trade war tit-for-tat, and frankly, it’s not a pretty picture. Canada has also levied tariffs on steel and aluminum.
On one hand, it’s understandable. Countries often resort to tariffs to protect their own industries or to address perceived trade imbalances. But on the other hand, such actions can quickly spiral out of control, hurting everyone involved in the long run. China buys a substantial amount of our canola, so a tariff of this magnitude will have a significant impact. And it seems like they are making their own people’s grocery bills go up.
It’s a tough spot for Canada. We have to figure out how to balance protecting our farmers, navigating these international trade disputes, and finding a path forward in a rapidly changing global economy. The situation isn’t helped by the fact that the average cost of new vehicles in Canada is $67,000. It feels like we’re in a bit of a bind.
The situation involving BYD, the top-selling EV in the UK but not readily available to Canadians, adds another layer of complexity. If the tariffs are retaliation for Canada’s restrictions on Chinese EVs, the decision becomes even more convoluted. Would dropping the EV tariffs in exchange for China dropping the canola tariffs be a good trade-off? It would signal support for farmers, but potentially be seen as a setback for Canadian auto manufacturers.
The question then becomes: is there a way to work this out in a way that benefits everyone? Perhaps by incentivizing the building of cars or parts in Canada. But given China’s dominance in EV production and its ability to subsidize its manufacturers, that’s likely a tough ask. Decoupling from America will take time, and working with China seems important to many.
Some wonder if this whole situation is just a self-inflicted wound on China. Are these tariffs in China’s best interest? Will they become global pariahs? The answer isn’t straightforward, but it’s clear that these protectionist measures are not the best path towards building international relationships.
Ultimately, it’s about balancing competing interests. Cheap cars for everyone versus the survival of our auto industry. Supporting Canadian farmers while navigating complex trade relationships. The situation is a bit of a rock and a hard place.
Perhaps this highlights the need for greater diversification in our trade relationships. Relying so heavily on a few key partners can make us vulnerable.
It’s a reminder of the days of the WTO, when countries were supposed to work together to create a level playing field. Now, it seems like we’re moving towards deglobalization, and everyone is slapping tariffs on everything. This is not a simple issue of whether or not tariffs are good. This is a complicated and nuanced situation that calls for thoughtful responses.