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Canadian ag could be innocent bystander in Chinese tariff issue

Canadian ag could be innocent bystander in Chinese tariff issue

China has a history of targeting ag in geopolitical disputes

By Diego Flammini
Staff Writer
Farms.com

If China is looking to retaliate against Canada for recent tariff announcements, Canadian farmers may be the ones to feel the effects.

Prime Minister Trudeau recently announced 100 per cent and 25 per cent tariffs on Chinese electric vehicles, and Chinese steel and aluminum, respectively. The tariffs will take effect between the beginning and middle of October.

In an interview with La Presse, Wang Di, the new Chinese ambassador to Canada, indicated China will respond.

“China will obviously take firm and necessary measures to protect the rights and interests of Chinese companies,” he told the newspaper on Monday.

That’s where Canadian ag could be caught in the crosshairs.

China could take measures to impede Canadian ag exports.

“Yes, they could, and history says they will,” said Moe Agostino, chief commodity strategist with Farms.com Risk Management.

China has targeted Canadian ag in the past.

Following Canada’s arrest of Huawei executive Meng Wanzhou on Dec. 1, 2018, for example, China blocked imports of Canadian canola and all Canadian meat, citing impurities and labeling issues, though never outright linking the two issues.

Some producers wouldn’t be surprised if their sector is challenged by this situation.

“It is certain that we are worried about reprisals that China could decree on our products,” Charles-Félix Ross, the director general of the Union des producteurs agricoles du Québec,” told La Presse.

Canadians online also expect the Chinese to target farmers.

The Canadian tariffs “will ultimately hurt western Canada when China retaliates and targets agriculture with tariffs,” Carl Abbott posted on X.

“It’s only going to hurt Canada when China retaliates with tariffs on all the natural resources, and agriculture products we send them,” a user named Frank said on X.

Other countries and farmers have felt the effects of Chinese retaliation.

In June 2024, for example, in response to the European Union announcing tariffs on Chinese electric vehicles, China announced an anti-dumping investigation into pork and related products from the EU.

In March 2021, China banned imports of Taiwanese pineapples citing pest issues, though Taiwanese officials claimed no pest problems.

In 2019, China restricted imports of Australian coal after the country banned Huawi from its 5G network due to security concerns.

And in 2010, China suspended trade with Norway and restricted salmon imports after Liu Xiaobo, a Chinese political prisoner, won the Nobel Peace Prize. The two countries repaired their relationship in 2016.

Farms.com has contacted the Canola Council of Canada for comment on this latest issue with China and its level of concern.


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