Mechanical engineering China investigates Canada's canola exports in response to e-car tariff

In response to Canada's punitive tariffs on Chinese e-cars, Beijing has launched an anti-dumping investigation into Canadian canola. Exports of Canadian canola to China have increased significantly and are being sold at prices below production costs.

"Unfair trade practices" had caused losses in the domestic rapeseed sector, the Chinese Ministry of Commerce announced in a communiqué. At the same time, the ministry announced that it would initiate an "anti-discrimination investigation" into the tariffs imposed by Canada and seek arbitration at the World Trade Organization (WTO). China will "take all necessary measures to defend the legitimate rights and interests of Chinese companies".

The USA and EU have also announced tariffs Last week, the Canadian government imposed a 100% tariff on electric cars from China. Tariffs of 25 percent were also announced on Chinese steel and aluminum products. These measures are intended to create fair conditions for the domestic industry, as Finance Minister Chrystia Freeland emphasized.

The Canadian government argues that Chinese manufacturers are benefiting from a government-imposed policy of overcapacity and laxer standards to protect workers and the environment, among other things. In May, the US government imposed additional tariffs of 100 percent on electric cars from China. The EU Commission followed suit in June with its own plans, which, however, provide for different tariffs depending on the manufacturer.