Cut and paste from the Toronto Star
Canada is caught in a ‘double trade war’ — and one premier is urging Ottawa to drop its fight against China
On top of threatened U.S. tariffs, China has brought down another hammer on many Canadian farm and seafood exports.
B.C. Premier David Eby speaks to reporters from his office following the throne speech at the legislature in Victoria on Feb. 18, 2025.
OTTAWA — On top of threatened U.S. tariffs, China has brought down another hammer on many Canadian farm and seafood exports, hitting them with a “double trade war” that industry leaders say will slam Canadian producers.
In response, B.C. Premier David Eby called on Ottawa to drop its tariff fight against China, saying Canada got nothing out of trying to align trade policy with the United States last fall ahead of President Donald Trump’s election.
Eby, who stepped up measures against the United States along with Ontario Premier Doug Ford on Monday, said the government of Canada should offer a concession in the trade dispute it has with China.
“The president has been completely indifferent to our policy towards China, and in fact, he doesn’t seem to have any designs on treating Canada better than China.” In fact, he said, Trump is “coming after Canada far more aggressively than he is the government of China.“
I think it will be necessary for the federal government to have a look at tariff policy with respect to trading partners around the world, understanding that we don’t want to get crushed between the two biggest economies in the world — the American and the Chinese economies — and ensuring we’re diversifying around the world.”In October, Canada matched U.S. tariffs against Chinese imports, imposing 100 per cent tariffs on Chinese electric vehicles, and 25 per cent tariffs on Chinese steel and aluminum imports. When the tariffs on China were announced at a cabinet retreat, the Trudeau government made clear it was moving in lockstep with the Americans against Chinese “overcapacity.”
Beijing responded several months later, announcing on Saturday that it will levy a 100 per cent tariff on more than $1 billion worth of Canadian canola oil, meal and pea imports, and a 25 per cent duty on $1.6 billion worth of Canadian aquatic products and pork.
”We can’t survive a double trade war with our two largest trading partners,” said Kyle Larkin, head of the Grain Growers of Canada, which represents about 70,000 grain farmers.
The Chinese tariffs open a new front that will put even more pressure on the sector at a time when U.S. tariff threats, though temporarily paused, have rattled markets and led to a drop in commodity prices, Larkin said in an interview.
Silo operators are already starting to reject grain farmers trying to drop off their canola, he said. That has a domino effect on the cash flow of farmers who operate with “thin margins,” and sell grain in the fall and spring to earn cash to buy seed, fertilizer and pesticides for the upcoming growing season.
While they want Ottawa to engage with China to resolve the dispute, Larkin said the federal government — which offered $1 billion in new credit financing on Friday through Farm Credit Canada — will also have to look at higher compensation and supports for farmers.
“We’re already seeing about 1,000 to 1,500 family farms lost every year. So, you know, it’s kind of a precipitous situation that we find ourselves in right now,” said Larkin.
Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance, said the organization had warned the Canadian government last year that it risked Chinese retaliation because Ottawa did not go through the kind of investigation that European countries undertook in line with World Trade Organization processes.
The alliance, which represents Canadian ranchers, producers, and food processors that export products, is now calling on Ottawa to engage with China to persuade it to drop the looming tariffs
The incoming prime minister, Mark Carney, talked tough on tariffs and Trump in his victory speech after winning the Liberal leadership.
During his campaign he said he would impose “dollar-for-dollar” tariffs on the U.S. He did not repeat that threat Sunday night, but said “the Canadian government is rightly retaliating with our own tariffs that will have maximum impact in the US and minimum impact here in Canada.
“My government will keep our tariffs on until the Americans show us respect, and make credible, reliable commitments to free and fair trade. In the meantime, we will ensure that all proceeds from our tariffs will be used to protect our workers,” he said.
On Monday, the prime minister-designate spoke with Ford about the tariff fight.
Ford told Bloomberg TV that Carney is “right in line with what I believe in” when it comes to dealing with Trump.
Despite the U.S. tariffs being temporarily paused until April 2, provinces are acting.
Ontario slapped a promised 25 per cent export tariff on electricity shipped to the U.S. on Monday, and B.C. removed all American liquor from provincially run stores, not just those from “red” states where Republicans are in power.
Eby is now preparing legislation to allow B.C. to levy tariffs on American cars travelling through Canada en route to Alaska, and has recommended similar tariffs on American thermal coal shipments that transit through Canada to reach shipping routes to Asian markets.
Former prime minister Jean Chrétien told Liberals Sunday night that governments of all stripes in Canada should consider responding to U.S. tariffs with export tariffs on Canadian oil, gas, potash, steel, aluminum and electricity shipped to the U.S.
Ford said Alberta Premier Danielle Smith should slap export tariffs on her province’s oil exports south of the border, like he did with electricity.
“You want to talk about a trump card that will instantly change the game,” said Ford. “The Americans, all of a sudden their gas prices go up 90 (cents) to a dollar a gallon, they will lose their minds.” He urged Smith not to be shy about it as the trade war continues. “We need to at least put that in the window.”
Smith adamantly rejected that notion again Monday.
In a news conference in Beijing earlier Monday, China’s Foreign Ministry spokesperson Mao Ning said China’s move is justified because Canada disregarded its arguments against EVs.
“Canada has insisted on taking discriminatory restrictive measures on some Chinese imports. This seriously violates WTO rules, disrupts normal trade order, and gravely harms China’s lawful rights and interests. The countermeasures China has taken are fully necessary, justified, reasonable and lawful.”
Canadian Foreign Minister Melanie Joly is urging New Canadian Liberal party leader Mark Carney to take a strong stance on tariffs imposed by the United States under the Trump administration. (AP Video / March 10, 2025)
With files from Robert Benzie
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