China announced on Tuesday it will initiate an anti-dumping investigation into canola imports from Canada, escalating tensions after Canada unveiled plans to impose a 100% tariff on Chinese electric vehicles (EVs).
China's Ministry of Commerce expressed strong dissatisfaction with Canada's "discriminatory" trade measures, stating it will also seek recourse through the World Trade Organization (WTO).
The ministry warned that further countermeasures could be taken, including an anti-discrimination investigation into Canada’s tariffs on Chinese EVs.
The tariff, set to take effect on October 1, will raise the total duty on Chinese EVs imported to Canada to 106.1%, up from 6.1%, a move similar to actions taken by the United States and the European Union.
In response, China highlighted the significant increase in Canadian canola exports to China, which reached $3.47 billion in 2023, a 170% year-on-year surge in volume. The ministry accused Canada of dumping, leading to losses for China's domestic industries.
China's actions mark a significant escalation in trade tensions, with potential global implications for canola and EV markets.