On March 8, 2025, China’s Ministry of Commerce announced the results of its anti-discrimination investigation into Canada, finding that Canada had imposed additional tariffs on Chinese electric vehicles, steel and aluminum products.The CustomsThe Chinese government has determined that the acts of Canada constitute discriminatory trade restrictions, and has imposed a 100% tariff on agricultural products such as rapeseed oil and peas originating from Canada, and a 25% tariff on aquatic products and pork since March 20. This is the first time that my country has initiated an anti-discrimination investigation and taken corresponding measures.

Background: Canada’s unilateral restrictive measures on China spark controversy

In October 2024, the Canadian government announced a 100% tariff on electric vehicles imported from China and a 25% tariff on steel and aluminum products. This decision was made without sufficient investigation and reasonable argumentation, and was only aimed at Chinese products. It was identified by China as a discriminatory restrictive measure. Canadas move is believed to be in line with the US tariff policy on China, but its unilateral action has seriously damaged China-Canada economic and trade relations and undermined the legitimate rights and interests of Chinese companies.

Investigation launched: my country launches anti-discrimination investigation in accordance with law

On September 26, 2024, the Ministry of Commerce of China formally launched an anti-discrimination investigation against Canada in accordance with the relevant provisions of the Foreign Trade Law of the Peoples Republic of China. This is the first time that China has used anti-discrimination investigation tools to safeguard the international trade order and the legitimate rights and interests of Chinese companies. During the investigation, the Ministry of Commerce collected a large amount of evidence through questionnaires, hearings, field investigations, etc., and listened to the opinions of domestic industry associations and companies.

Findings: Canadian measures constitute discriminatory restrictions

On March 8, 2025, the Ministry of Commerce announced the results of the investigation, determining that Canadas restrictive measures constitute discriminatory behavior and violate the WTOs non-discrimination principle and fair trade principle. The investigation showed that Canadas imposition of tariffs on China has seriously affected Chinas exports of electric vehicles, steel, aluminum and other products, causing significant losses to related industries.

Countermeasures: China imposes additional tariffs on some Canadian goods

Based on the survey results, China has decided to impose additional tariffs on some goods originating from Canada from March 20, 2025. Specific measures include: 100% tariffs on rapeseed oil, oil cakes, and peas; 25% tariffs on aquatic products and pork. These goods are important categories of Canadian exports to China, and the additional tariffs will have a significant impact on their related industries.

Industry support and international trade significance

Six major industry associations, including China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters and China Association of Automobile Manufacturers, unanimously supported the investigation and ruling of the Ministry of Commerce, believing that this move effectively safeguarded the legitimate rights and interests of Chinese companies. This anti-discrimination investigation is not only an important practice of China in the field of international trade, but also provides a model for the world to deal with unilateralism and protectionism.

Future Outlook: Trends in China-Canada Economic and Trade Relations

While imposing additional tariffs, China also left room for Canada to adjust. China said that if Canada cancels its discriminatory measures against China and provides appropriate compensation, China can consider adjusting or canceling the additional tariffs. In the future, the direction of China-Canada economic and trade relations will depend on whether Canada can view bilateral cooperation rationally and take practical actions to repair relations.