Canada's tariff hikes on China violate WTO rules — Mutually beneficial economic and trade cooperation is the right path

Editor's note: The article, written by Professor Yang Hangjun, Vice Dean of the School of International Trade and Economics, University of International Business and Economics, reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity. 

Recently, Canada imposed a 100 percent tariff on imports of China-made electric vehicles and a 25 percent duty on Chinese steel and aluminum. China has expressed strong dissatisfaction, asserting that this move seriously violates World Trade Organization (WTO) rules, constitutes a discriminatory measure against China, and severely harms China's legitimate rights and interests as well as the healthy development of bilateral economic and trade relations. 

In response, China has announced countermeasures, effective March 20, 2025, applying a 100 percent tariff on Canadian rapeseed oil, oil cakes, and pea imports, and a 25 percent duty on Canadian aquatic products and pork. These measures are intended to counteract Canada's trade restrictions and safeguard China's own interests.

Canada's actions not only undermine China-Canada economic and trade relations but also violate the principles of free trade and fair competition. To this end, the China Association of Automobile Manufacturers has strongly opposed these tariffs, arguing that they disrupt the security and stability of the global automotive industrial and supply chains, hinder normal economic and trade cooperation between the two countries' automotive industries, and significantly jeopardize the interests of Canadian consumers. 

In addition, China's counter-tariffs are expected to significantly impact Canada's agricultural sector, particularly on exports of rapeseed oil and other agricultural products. Saskatchewan Premier Scott Moe has explicitly stated that the province's canola industry has become a victim of Canada's tariff policies, directly reducing farmers' incomes and weakening local economic development. Data shows that China has been a major destination for Canadian agricultural exports in the past few years, and any trade barriers could further strain Canada's economy.

It should be noted that Canada's tariff measures are not an isolated incident. In recent years, the United States and the European Union have imposed similar restrictions on Chinese electric vehicles and other products, citing alleged unfair subsidies for relevant industries from the Chinese government. However, these accusations lack substantive evidence. On the contrary, the rise of China's new energy vehicle industry has been primarily driven by technological innovation and market competition.

Chinese enterprises have made substantial R&D investments in related fields, achieving significant breakthroughs that have made their products highly competitive in the global market. This competitiveness stems from market choices rather than government subsidies. Thus, Western countries' tariff policies are essentially a means of masking their own industries' lack of competitiveness and contradict the fundamental principles of free trade.

China and Canada have vast potential for economic and trade cooperation, particularly in fields such as agriculture, energy, and manufacturing. Canada has long been an important trading partner for China, and the two countries have established stable trade relations over the years. However, Canada's tariff measures not only harm the interests of Chinese enterprises but also have negative repercussions for its own economy. 

Furthermore, Canada seems to be imposing additional tariffs on China to appease the US. This strategy may ultimately backfire. Every country has its own interests, and blindly following the policies of another country may come at the expense of its own interests. Canada should prioritize its own interests, take a prudent approach to its trade policies with China, and avoid short-sighted decisions that could undermine its long-term well-being.

China has consistently advocated for resolving trade disputes through dialogue and consultation while firmly opposing all forms of trade protectionism. Hopefully, Canada will recognize the gravity of the issue, adhere to WTO rules, and rescind its discriminatory tariffs on Chinese goods. By fostering the healthy and stable development of bilateral economic and trade relationships in collaboration with China, both countries stand to reap the benefits.