China Retaliates: Canada Tariffs Spark Global Trade Jitters, Crypto Eyes Up

China has announced additional tariffs on Canadian imports, escalating a trade dispute. This move comes as a response to earlier Canadian tariffs on Chinese goods.

The tariffs, set to take effect on March 20, 2025, will target Canadian products, including a 100% tariff on rapeseed oil, oil cakes, and peas, and a 25% tariff on aquatic products and pork.

Trade War Heats Up: China & Canada Exchange Tariff Blows

The growing trade dispute between China and Canada unfolded after Canada imposed tariffs on Chinese goods that were aimed at China’s trade practices. In retaliation, China has shifted its focus to Canadian exports.

This new wave of tariffs follows a pattern of rising global trade tensions. Similarly, the United States has also expanded its trade war to include the European Union, Mexico, Canada, and South Korea. US actions have been prompted by concerns over national security related to imports and attempts to address what it sees as unfair trade practices.

Related: Trump and Trudeau in Talks: Will Tariffs Be Lifted Today?

Global Trade Slowdown & Market Volatility Follow Tariff Hikes

Global Impact on Trade and Economy: The impact of these tariffs is already evident in global markets. As countries like China and the US continue to enforce tariffs and non-tariff barriers, global trade flows have slowed, and stock markets have experienced volatility.

Companies, particularly in the manufacturing sector, have faced rising costs, while producers and suppliers have been forced to look for alternative markets to minimize the impacts of tariffs.

Crypto Market Sees Unexpected Lift

Interestingly, despite this trade chaos, certain sectors have experienced unexpected shifts. Notably, the crypto market saw a slight uptick in interest, potentially tied to discussions surrounding the US government’s proposal for a national crypto reserve.

Under President Trump’s leadership, the United States has announced plans for reciprocal tariffs aimed at nearly all US trade members. Expected to be released on April 2, 2025, these tariffs will address what the White House considers unfair trade policies from countries like the European Union, Canada, and South Korea.

Related: China vs. Trump Tariffs: Global Markets Shaken, Crypto Beckons

However, Peter Navarro, a senior trade adviser, confirmed that inverse tariffs are certain, with the aim of reshaping the relationship between the US and its global trade partners. While the full scope of these tariffs is still unclear, their likely impact could be far-reaching, especially for US companies that depend on international trade.