China has retaliated after Canada slapped extra tariffs on its electric vehicles, steel and aluminium imports by launching its own ‘anti-discriminatory investigation’.
China said it strongly deplored and firmly opposed Canada’s “discriminatory unilateral restrictive measures” and it had requested talks with Canada at the World Trade Organization about the tariffs.
Beijing’s commerce ministry made the announcement on Thursday, after also revealing plans to probe Canadian canola imports. More than half of canola exported by Canada makes its way to China, the world’s biggest oilseed importer.
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Ottawa joined the US and the European Union in putting in place tariffs of 100% on Chinese EVs and 25% on Chinese aluminium and steel at the end of last month.
Now, China has launched an anti-curbs probe against the measures, which it says usually takes three months to complete but could be extended under special circumstances.
Trade friction between the countries heightened this week after Canada said it was “absolutely” considering banning Chinese-made software in EVs, among measures to counter what it calls overcapacity and a security threat.
- Reuters with additional editing by Sean O’Meara
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