China imposes 73.5% tariff on Canadian pea starch starting Wednesday
The levy follows a 10-month anti-dumping investigation and marks fresh trade tension despite improved relations since January.
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China is imposing a 73.5 per cent tariff on Canadian pea starch effective Wednesday, July 1, following an anti-dumping investigation launched last August.
China's Ministry of Commerce says its investigation found that Canadian pea starch was being "dumped" in China, causing "material injury to the domestic industry." Pea starch is commonly used as a thickener and stabilizer in food products, animal feed, and medication.
The tariff signals fresh trade tensions despite an improvement in relations since January, when Prime Minister Mark Carney visited Beijing and reached an agreement to sharply lower tariff rates on Canadian canola imports and suspend duties on some agricultural products, including a 100 per cent levy on Canadian peas. In exchange, the Canadian government agreed to allow up to 49,000 Chinese electric vehicles into the country at a low tariff rate.
Canada has remained concerned about Chinese dumping of steel products in light of U.S. tariffs and launched its own anti-dumping investigation in April.
