Canada’s new tariff follows a move by the U.S. to heavily tax Chinese-made electric vehicles.
China also targeted Canadian canola two years ago in response to the arrest of Meng Wangzhou, an executive of Huawei sought by U.S. law officials in connection with exports to Iran.
China banned canola imports from Richardson and Viterra and cost them an estimated $2.35 billion in lost sales.
Last year Canada sold about $5 billion worth of canola to China.
The Canola Council of Canada told federal officials that it would likely be a target of Chinese retaliation if it went ahead with tartiffs on China’s electric vehicles.
Ontario Premier Doug Ford has invested heavily in the electric vehicle industry and therefore urged the federal government to keep low-cost electric vehicles out of the Canadian market.
