Tariff Crisis in China and Canada Relations: The Response of the USA

China's Tariff Response to the U.S.

Chinese Foreign Ministry Spokesperson Guo Caikun expressed strong opposition to the U.S. trade policies carried out through Canada during a press conference held in Beijing. Guo stated, "China and Canada adhere to an understanding of cooperation in international relations. The agreements made in this context do not target any third party."

Trump's Warning of 100% Tariff on Imported Goods

U.S. President Donald Trump announced on social media that a 100% customs duty would be applied to goods imported from Canada as a result of an agreement with China. Trump said about Canadian Prime Minister Mark Carney, "If Carney thinks Canada will become a 'transshipment point' for China to send goods to the U.S., he is very wrong."

Customs Duties on Steel and Electric Vehicles

Canada announced that starting in 2024, following the practices in the U.S. during the Biden administration, a 100% customs duty would be applied to Chinese-made electric vehicles, and a 25% customs duty would be applied to aluminum and steel products. China filed complaints, asserting that these practices violate the World Trade Organization (WTO) rules.

2024 Agreement and Import Quota

Following Prime Minister Mark Carney's visit to China in 2024, Canada announced that it would eliminate the customs duty and apply a 6.1% customs duty on imports below 49,000 vehicles per year. The two countries had previously experienced tensions due to mutual increases in customs tariffs, affecting trade relations with the Washington administration.

Conclusion and Expectations

The U.S. is taking initiatives to reduce tensions regarding trade relations between China and Canada, and this process represents a critical period for both countries to achieve a stable trade structure.