Tariff wars are a recurring feature in the global trading system, and tensions between China and Canada have been ongoing for years. These tariff wars are largely driven by geopolitical tensions.
In 2019, for instance, China banned Canadian meat imports following the detention of Huawei’s chief executive officer, Meng Wanzhou. Although China cited the use of banned feed additives in Canadian meat as the reason, many viewed it as a diplomatic response to the rift between Ottawa and Beijing.
Now, China is threatening to investigate Canada for potential dumping of canola into its market. In international trade, dumping is a type of price discrimination where a product is sold at different prices in domestic and export markets. Essentially, it involves selling a product in a foreign market at a price lower than its normal value in the home country.
