China’s tariff in Canada exists. What do they target?

Canadian agricultural producers warn of the devastating effects of the new Chinese Definitions This began on Thursday, which they say will double the economic pressure of the American trade war.

China Implement a 100 percent tax on Canadian canola oil and meal, as well as peas, in addition to 25 percent duty on seafood and pork.

These are at the top of the current definitions of 25 per cent on the majority of exports to the United States, which are to bring more “mutual” tariffs on April 2 and that match those that were placed on American goods.

“If you are a therapist, you will feel this pressure in a more feasible way to move forward,” said Eric Johnson, chief economist and vice president at Bank of Montreal Capital.

For Tara Sawyer, a grain of grain and head of grain farmers in Canada who include their canola crops, Chinese definitions collect at the difficult time he and other farmers have faced over two years to three years, with lower revenues due to drought and high operating costs.

The customs duties also come just weeks before the seed starts to crops this season.

“This makes what was a completely devastating challenge,” she told Global News.

The definitions against Canadian fees are identified by 100 percent on the Chinese Chinese Electric vehicles And a 25 percent tax on aluminum and steel products, which were announced last year.

The federal government accused China of unrelenting the EV industry in order to introduce cheap cars in North America, threatening the auto industry in Canada.

The United States’s EV customs duties are for the same reason.

China launched “anti -dumping” investigations at Canadian Canola imports In September 2024 in response, and announced the new definitions on March 8 as a result.

“It is a penal number consisting of the Chinese system,” said Daniel Terefler, an economist and professor at Rutman College of Administration at the University of Toronto.

“Canada is trying to protect itself, which may be the complete collapse of our auto sector if we allow China to support its baits on a large scale … (The EV tariff was reached in China in Canada) after careful study and reflects the reality in China.”

The growing trade war raised the last efforts to improve the relations between Utawa and Beijing from the 2019 and 2020, when Canada has detained Huawei Cfo Meng Wanzhou. China has targeted Canola at that time as well, as well as Canadian citizens in China.

Relationships are more tense after disclosure on Wednesday China has implemented four Canadians For “drug -related crimes” this year.

China is the highest export market in Canada for canola seeds, oil and meal. Canada’s Canola Council says that economic activity with China was approximately $ 5 billion last year, including nearly one billion dollars in the canola meal.

The new definitions have effectively closed the door in this market because of the sharp rate.

“Where will we sell that canola, or can we?” She said. “It is really stressful, and it changes all the time. There is a lot of uncertainty.”

Johnson notes that the canola seeds, which make up the majority of the Canola trading in Canada, are not included in a tariff on Thursday, although Beijing said it was continuing to investigate these alleged exports.

When China’s anti -garbage investigations were announced Mooringstar DBRS said The resulting definitions can lead to a “billion dollar strike” to the country and its supply chain.

The Canola Council in Canada estimates that the industry has lost between $ 1.54 billion and $ 2.35 billion between March 2019 and August 2020 of lost sales and low prices due to the previous definitions in China.

Canola prices in Canada can decrease as producers are looking to sell the product that was previously dedicated to Chinese export, says Swir and the economists.

Meanwhile, the Fisheries Council in Canada said in a statement this month that the 25 percent Chinese tariff on seafood products is an “existential threat” of this industry. She said that the combination of customs tariffs from China and the United States “will effectively cut” by 83 percent of Canada’s seafood export markets around the world.

According to the federal government, China is the second largest fish export market in Canada after the United States, with $ 1.3 billion in products last year. Some export markets, such as Geoduck Clam from British Columbia and Laller in Maritimes, depend almost exclusively on Chinese buyers.

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For pork, China is the third largest export market behind the United States and Japan, with more than $ 43 million over the past year.

“It was not possible for these Chinese definitions to come in a worse time,” Kaith Curie, President of the Canadian Agriculture Federation, said in a statement this month.

Trefler said that although the customs tariff in China may not affect inflation, it will have “huge” effects on employment and production, as the farmer is likely to have to get rid of workers or close.

“It is a devastating matter not only for individual farmers but for societies that surround these farmers,” he said.

Johnson said that the actions of China, while destabilizing the specific industries, are still lower than uncertainty than the constantly advanced commercial policies from the Trump administration in the United States, which is still the motivation of recession fears.

“There was already some focus on (diversifying trade away from China) for years,” he said. “The challenge is that some of this re -feeding was towards the (United States) partner from which we are now less confident.”

The federal government and provinces where the affected sectors are required to support the producers whose lower lines will be hit.

On Wednesday, the Minister of Agriculture, Cody Pluis, said that he spoke with his counterparts at Alberta and Saskatchewan about the use of “all tools in our tools box, including our business risk management programs, to support Canola, peas and pork farmers.”

“We are focusing on ensuring that there is support, to ensure that there are mechanisms to support these affected producers.” He said more details will be shared in the coming days.

“This is important.”

The Alberta government allocated $ 4 billion this year to manage its response to the definitions, an increase of $ 2 billion over the previous year.

Daniel Smith, Prime Minister at Alberta, told reporters on Wednesday that there is a possibility for a “solution in Canada” to ensure that the canola crops reach the market.

Smith said: “I have no solution for pork yet,” Smith said. “I have doubled the eating of bacon as a support scale.”

The Manitoba budget, which was announced on Thursday, included wide plans for hundreds of millions of dollars to obtain support for agricultural companies, producers and individuals, and also provided new tax measures to help stimulate investment.

Saskatchewan, with a small surplus of $ 12 million in its budget that was shown on Wednesday, did not put money to help manage the potential impact of definitions.

Kent Smith, Minister of Fisheries in Nova Scotia, told reporters on Wednesday that the government can help seafood producers from the $ 200 million emergency fund created to deal with the impact of definitions if necessary.

But he also underestimated the potential impact on the short -term on the new fees in China, saying that he heard a “cautious optimism” of producers at the seafood exhibition for three days he attended with Prime Minister Tim Houston this week.

Industry groups say that the government will eventually have to intervene in new support to address Chinese definitions specifically, saying that the relief that was launched in response to the American definitions will not be sufficient.

Sawyer said she is especially concerned about farmers’ mental health because they deal with additional stress.

She said, “Everyone is struggling with what to do.”

– With files from the Canadian press