Canada will “stand firm” and keep its tariffs on China following Beijing’s move to put tariffs on Canadian agricultural products, Industry Minister François-Philippe Champagne says, citing ongoing concerns about Chinese trade practices and their potential impact on Canadian industry.
Champagne made the comments in a March 12 interview on CTV News’ Power Play when asked by host Vassy Kepelos whether Ottawa would reconsider its posture on China amid Canada’s ongoing trade tensions with the United States.
Champagne didn’t comment on Canada’s posture, but said specifically with respect to the tariffs, Ottawa wouldn’t back down, because the tariffs were put in for “good reasons.”
“We would never be a back door to cheap Chinese vehicle[s] which are overly subsidized and where they don’t respect labour law and environmental laws,” he said. “They’re dumping, you know, steel in North America and you see these cheap vehicles coming here.”
“We’re going to stand strong, we’re going to stand firm,” Champagne said. “We’re going to fight for Canadian interests.”
China last weekend announced 100 percent tariffs on Canadian canola oil, canola meal, and other agricultural products, as well as 25 percent levies on Canadian seafood and pork products, set to take effect on March 20, in retaliation for tariffs Canada imposed last fall.
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Ottawa applied 100 percent tariffs on Chinese-made electric vehicles and 25 percent on Chinese aluminium and steel products on Oct. 1, 2024, saying Canadian industries were at risk due to “unfair” competition from Chinese producers who benefitted from China’s “intentional, state-directed policy of overcapacity and oversupply.”
The move brought Canada in line with the United States, which had introduced the same levies months earlier.
Champagne’s comments come after British Columbia Premier David Eby suggested on March 10 that Ottawa reconsider its trade policy toward China, saying Beijing’s tariffs add pressure to ongoing tariffs coming from the United States. Eby characterized Canada’s tariffs on China as an “attempt to curry favour” with the U.S. administration through trade policy alignment, and said it has not had “the intended effect.”
When asked about Eby’s suggestion, Champagne said Canada can’t reconsider its policy because China “does not respect the rules” when it comes to trade, and that its tactics undermine western economies in the long term.
China’s perceived oversupply has also been a target of U.S. trade policy, with both the Trump and Biden administrations accusing Beijing of flooding the global market with cheap, heavily subsidized products.
The latest Chinese tariffs on Canada stem from an “anti-discrimination” investigation the Chinese regime said it began last September. The investigation is separate from the anti-dumping probe into Canadian canola imports Beijing launched a few days after Ottawa first introduced the tariffs.
Some Canadian premiers have also raised concerns about Chinese trade practices.
Ontario Premier Doug Ford has called for a bilateral Canada-U.S. trade agreement to replace the current three-country deal that includes Mexico, accusing Beijing of using Mexico as a “backdoor” to access the North American market while avoiding U.S. tariffs.
He argues that low-cost Chinese goods are being rebranded as Mexican-made to be sold in Canada and the United States.
Alberta Premier Danielle Smith, alongside Doug Ford, has urged Canada and the United States to cooperate in addressing “unfair” Chinese trade practices rather than engaging in a trade dispute with each other.
During the March 12 interview, Champagne said trade uncertainty and its effects on North American competitiveness could prompt the United States to reconsider its tariffs on Canada.
“We cannot allow uncertainty to become the new certainty in North America, because it goes to undermine our competitiveness in North America, and that’s going to effect our national security over the long term,” Champagne said.
“I think that message is now resonating in Washington.”
