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China announced new tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies imposed by Ottawa in October and escalating tensions amid U.S. President Donald Trump’s tariff threats.

The tariffs, set to take effect on March 20, include a 100% duty on $1 billion worth of Canadian rapeseed oil, oil cakes, and peas, along with a 25% tariff on $1.6 billion in aquatic products and pork.

Beijing’s move mirrors Canada’s 100% and 25% import duties on Chinese electric vehicles, steel, and aluminum, but excludes canola, a key Canadian export that China has been investigating for anti-dumping violations. Analysts suggest this leaves room for negotiations.

The timing of China’s response may also be a warning to Canada as Trump considers easing U.S. tariffs on Canada and Mexico if they apply his 20% tariff on Chinese goods over fentanyl flows.

China is Canada’s second-largest trading partner, and with Canada’s next national election due by October, some analysts believe Beijing may wait for a new government before resetting relations.

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