By Ricky S 
China has introduced fresh tariffs on Canadian agricultural and food items, which is a direct turn to the struggle in the trading process between the two nations.
The act was induced after Canada decided to levy duties on Chinese electric vehicles, steel, and aluminum products. The Ministry of Commerce of China said these tariffs are scheduled to be imposed on March 20, and they will be covering over $2.6 billion worth of Canadian exports.
Some of the primary measures would be a 100% levy on Canadian rapeseed oil, oil cakes, and peas, transactions that are worth some $1 billion. Furthermore, a 25% tariff is going to be added to Canadian pork and aquatic products which are at $1.6 billion. So, the absence of the main export canola such as the one to be applied on the other goods meant the possibility of future discussions.
China’s step stems from the findings of an anti-discrimination investigation that concludes Canada’s trade actions caused the normal trade process to be disrupted and infringed upon the rights and interests of the Chinese firms.
The new development adds another layer of already soaring worldwide trade tensions, mainly influenced by tariffs evolving among the United States, China, Canada, and Mexico.
Past action took in by Canadian Prime Minister Justin Trudeau was the installing of tariffs on Chinese products in opposition to over-capacity in China.
It remains a common view that the relevance and the specifics of the targeted industries of the Chinese tariffs betray a strategic approach driven by the central issue of managing multiple international trade disputes and with a possible eye on the national elections in Canada.
The agricultural sector in Canada is expected to be the most affected by these tariffs. Many farmers and exporters of rapeseed oil, peas, and pork, as well as those involved in aquaculture, are now forced to look for new markets or else they will not be able to sell a large portion of their current products because the new tariffs create a significant barrier to entry.
In response to China’s announcement, Canadian officials have expressed disappointment and are considering various options to mitigate the impact on their agricultural sector.
Ng explained that the government’s mechanisms will help the affected industries, and she is willing to exchange ideas with the Chinese authorities.
Such move derives grave concern over global trade dynamics. Reciprocal measures of economies are currently responsible for an atmosphere of uncertainty prevailing in the world.
High prices of products, such as jewelry and watches, may lead to changing the supply chains and market strategies for companies. Experts worry about international trade wars that could slow down the already weakened global economic activity.
The IMF warned of the risks related to trade protectionism, admitting that it is capable of creating chaos in the supply of goods thus leading to high prices for consumers as well as higher production costs for companies.
The effective intervention is expected to be from the governments in both countries and other countries concerned around the globe. It is anticipated that the constructive initiatives would not only abate the tensions but also bring about the collaboration of all participants, thus establishing a stable global environment.