Chinese tariffs in Canada are in place. What do they target?

Canadian agricultural manufacturers warn the devastating influences of new Chinese tariffs This began on Thursday, which they say will be economically stressed from the US trade war.

China He imposed a 100 -pointed tax on Canadian canol oil and a meal, as well as peas, plus 25 percent of customs duties on seafood and pork.

They are at the top of the existing 25 percent of tariffs to most exports to the United States, which should bring further “reciprocal” tariffs that suit American goods on April 2nd.

“If you are a processor, you will feel the pressure of this in a much more meaningful way forward,” said Erik Johnson, a senior economist and vice -president at the Bank of Montreal Capital Markets.

For Tara Sawyer, grain breeder Alberta and a chair of grain breeders in Canada, whose crops include canol, Chinese tariffs, a difficult time they have faced in the last two to three years, with incomes below normal due to droughts and growing operational costs.

Tariffs come just a few weeks before shadows for this season’s crops.

“That’s what’s already challenging quite devastating,” she told Global News.

Tariffs are in retaliation against 100 percent of Canada on Chinese production electric vehicles And 25 -pointed aluminum and steel products, which were announced last year.

The Federal Government accused China of unjustly subsidizing its EV industry to enter cheap vehicles in North America, threatening Canadian auto industry.

EV tariffs were answered by similar names that have now imposed for the same reason.

China launched an “antipody” investigation into the import of Canadian canols In September 2024 in response and announced the new tariffs on March 8th.

“It’s a criminal number consisting of a Chinese regime,” said Daniel Trefler, economist and professor at the Rotman School of Management, University of Toronto, said the 100th Canola’s 100 -pointed tariff.

“Canada is trying to protect herself from what would be the overall collapse of our auto -sector if we allow China massively subsidizing his cars…. [Canada’s EV tariffs on China] They arrived after careful consideration and reflecting reality in China. “

The growing trade war has made recent efforts to improve the relationship between Ottawa and Beijing from a low point in 2019 and 2020, when Canada detained Huawei Cfo Meng Wanzhou. At the time, China was aiming for the export of canols to retaliate, as well as Canadian nationals in China.

Relationships are even harder after being discovered on Wednesday China killed four Canadians For “drug -related crimes” this year.

China is the best export market in Canada for canola seeds, oil and meal. Canada Council Canola says that the economic activity with China was nearly $ 5 billion last year, including almost one billion dollars of a canal meal.

Sawyer, which manages 4,000 hectare cereals in ACME, Alta, says the new tariffs have effectively closed the door in that market because of the steep rate.

“Where will we sell that canol or can we?” she said. “It’s really stressful and changes all the time. There are so many uncertainty.”

Johnson notes that the canol seeds, which make up most of the Canadian canal trade, are not involved in Tariff on Thursday, although Beijing said he continued to investigate the alleged disposal of that export.

When the Chinese Anti -Purse Sonda, the Credit Agency were first announced Morningstar DBRS said The resulting tariffs could lead to a “hit $ 1 billion” for the Earth and its supply chain.

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

The prices of canolas could flow further in Canada because manufacturers seek to sell out a product that was previously intended for Chinese exports, say Sawyer and economists.

Meanwhile, the Canada Fisheries Council, meanwhile, said in a statement of this month that the 25 -firm Chinese tariff on seafood products is a “existential threat” to the industry. He said that a combination of tariffs from China and the USA “effectively cut off” 83 percent of Canadian markets of export fruits around the world.

According to the Federal Government, China is the second largest fish export market and seafood exports in Canada after the US, and last year they were delivered there $ 1.3 billion. Some export markets, such as geoduck shells from British Columbia and Ervers in Maritimes, are almost exclusively relying on Chinese customers.

As for pork, China is the third largest export market behind the US and Japan, and over the last year over $ 43 million has been exported.

“These Chinese tariffs couldn’t get worse,” said Keith Currie, president of the Canadian Federation of Agriculture, in a statement this month.

Trefler said that although Chinese tariffs cannot influence inflation, it will have “huge” employment and production effects, and farms are potentially forced to release workers or close completely.

“This is devastating not only for individual farmers, but also for the communities that surround these farmers,” he said.

Johnson said that Chinese actions, although destabilized certain industries, still represent less uncertainty of constantly developing trade policies from Trump’s administration in the United States, which are still a driving factor of fears in recession.

“It was already an emphasis on [diversifying trade away from China] Years, “he said. [the U.S.] that we are less sure now. “

The federal government and the provinces where sectors are affected are concentrated to support manufacturers whose lower line will be affected.

Agriculture Minister Kody Blois said on Wednesday that he had spoken with his colleagues in Alberti and Saskatchewan about the use of “all tools in our tools, including our programs of business risk management, to support our canolas, peas and pork farmers.”

“We are focused on ensuring that there are support, to make sure that there are mechanisms that support those affected by manufacturers,” he told reporters after a cabinet meeting in Ottawa. He said more details would be shared in the coming days.

“This is significant.”

Alberta has allocated four billion dollars this year to manage her reply to tariffs, which is two billion dollars compared to the year before.

Prime Minister Alberta Danielle Smith told reporters Wednesday that there was a potential for “Made in Canada Solution” to ensure that canola crops could come to the market.

“I have no solution for pork yet,” Smith said. “I doubled my bacon intake as a measure of support.”

Manitobin budget, announced on Thursday, included wide plans for hundreds of millions of dollars to support companies, agricultural manufacturers and individuals, and also introduced new tax measures to help encourage investment.

Saskatchewan, with a slender excess of $ 12 million, did not set aside money on Wednesday to help manage the potential influence of tariff.

Fisheries Minister Nova Scotia Kent Smith told reporters on Wednesday that the Government could assist the seafood manufacturers from their extraordinary state of the Extraordinary States in the amount of $ 200 million founded to deal with the influence of tariffs if necessary.

But he also reduced the potential short -term influence of new Chinese levies, saying that he had heard “cautious optimism” from a manufacturer at a three -day seafood exhibition attended by the Prime Minister of Houston this week.

Groups in the industry say that the Government will eventually have to enter new supports in order to particularly address the Chinese tariffs, saying that relief triggers in response to US tariffs will not be sufficient.

Sawyer said she was particularly concerned about the mental health of farmers because they were involved in extra stress.

“Everyone struggles with what to do,” she said.

– with files from the Canadian press