China’s Retaliatory Tariffs on Canadian Goods – Effective March 20, 2025

Trade Update • March 10, 2025

hina has announced new tariffs on specific Canadian imports in response to Canada’s recent tariff measures on Chinese goods. This move marks another chapter in the ongoing trade dispute between the two nations, affecting key industries such as agriculture and seafood.

Background: Canada’s Tariffs

In October 2024, Canada implemented a 100% tariff on electric vehicles imported from China, followed by a 25% tariff on Chinese steel and aluminum products. These actions were justified by Canada as necessary to protect domestic industries from perceived unfair competition due to Chinese government subsidies

China’s Response: New Tariffs Announced

In direct response, China has announced that effective March 20, 2025, additional tariffs will be applied to multiple Canadian imported products. The new tariffs include:

• 100% Tariff – Applied to canola oil, oilseed meal, and peas. Annex 1.
• 25% Tariff – Applied to seafood and pork products. Annex 2.
• See full product lists – Annex 1 & 2.

Calculation of Duties

• Additional tariff amount = Customs valuation × Additional tariff rate
• Total customs duty = Duty payable at the existing applicable tariff rate + Additional tariff amount

Import-related value-added tax (VAT) and consumption tax will be levied in accordance with relevant laws and regulations.

Potential Impact on Trade and Economy

These escalating tariffs are likely to have significant consequences for both economies. Canadian exporters, particularly in agriculture and seafood sectors, may face reduced competitiveness in the Chinese market, while Chinese consumers could see higher prices for Canadian imports.

As trade tensions continue, both nations may explore diplomatic or economic measures to navigate this evolving situation.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Please contact your Client Care Manager or our Global Trade Services Team gts@ghy.com, or call +1 (800) 667-0771.