Global Markets on Edge as China Unleashes Tariff Bombshell

Beijing (The Uttam Hindu):  In a move that's expected to further escalate trade tensions, China has imposed heavy tariffs on Canadian agricultural and food products. This decision comes in response to Canada's imposition of 100% and 25% duties on Chinese electric vehicles, steel, and aluminum in October last year.

 China's Customs Tariff Commission announced that the new duties will come into effect from March 20. The tariffs include:

- 100% additional duty on Canadian rapeseed oil, oil cake, and peas

- 25% additional duty on Canadian pork and aquatic products (fisheries)

Reason Behind the Tariffs: According to Chinese customs officials, Canada imposed trade sanctions without investigation, affecting the economic and trade relations between the two countries. China had repeatedly requested Canada to stop this decision, but to no avail [1).

Global Trade Implications: This move is expected to not only impact China-Canada trade but also have far-reaching consequences for global markets. The trade war between the US, China, Canada, and Mexico is already intensifying, with the US and European Union claiming that China is gaining an unfair advantage in global trade by providing huge subsidies to its industries.  Chinese President Xi Jinping has made it clear that if America and its allies enter into a trade war, they will receive a tough response. This move is seen as a counter-attack, signaling that China will no longer ignore the economic policies of any country.