Xinhua News Agency, Beijing, March 8 (Xinhua) The State Council Tariff Commission issued an announcement on the 8th stating that, with the approval of the State Council, from March 20. 2025. additional tariffs will be imposed on some imported goods originating from Canada. A spokesperson for the Ministry of Commerce said that after investigation, the relevant investigated measures of Canada constitute discrimination, affecting the normal trade order and damaging the legitimate rights and interests of Chinese companies. 

China has decided to impose additional tariffs on some goods imported from Canada in accordance with the Tariff Law of the People's Republic of China, the Customs Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China and other laws and regulations and basic principles of international law, and with the approval of the State Council, the State Council Tariff Commission issued an announcement. From March 20. 2025. a 100% tariff will be imposed on rapeseed oil, oil cakes, and peas originating from Canada; a 25% tariff will be imposed on aquatic products and pork originating from Canada. Affected by this news, rapeseed oil led the rise of soybean oil and palm oil on this trading day, with a single-day increase of more than 400 RMB. The implementation of this policy may have an impact on the import cost and market supply of rapeseed oil, and thus affect the price trend and market structure of rapeseed oil. 

In addition to rapeseed oil, the prices of other oils and fats will also be affected to a certain extent: 

●Changes in consumer behavior

➬Substitution effect appears: After the price of rapeseed oil rises, consumers and companies will tend to look for relatively low-priced substitutes, such as soybean oil, corn oil, sunflower oil, etc. This will increase the demand for these oils and fats, thereby driving up their prices. 

➬Demand structure changes: Consumers' preferences and consumption structures for different oils and fats may change, which in turn affects the supply and demand balance and price trends of the entire oil and fat market.

●Changes in market supply and demand 

➬Supply structure adjustment: The rise in rapeseed oil prices may cause some companies to adjust their production plans and increase the production of other oils and fats, thereby affecting the supply of other oils and fats. If the supply of other oils and fats increases, it may have a certain inhibitory effect on their prices; conversely, if the supply decreases, the price may rise. 

➬Demand transfer drive: As consumers' demand for other oils and fats increases, the market supply of these oils and fats will also be adjusted accordingly, further affecting their prices. 

● Chain linkage effect 

➬ Adjustment of pressing enterprises: For enterprises that produce multiple oils at the same time, the rise in rapeseed oil prices may prompt them to adjust their production strategies, such as reducing rapeseed oil production and increasing the production of other oils, thereby affecting the market supply and price of other oils. 

➬ Impact on the feed industry: In the feed industry, rapeseed meal and soybean meal are common protein raw materials. The rise in rapeseed oil prices may indirectly affect the market supply and price of rapeseed meal, and then have a linkage effect on the market demand and price of other protein raw materials such as soybean meal. 

● Overall market sentiment and expectations 

➬ Changes in market confidence: The rise in rapeseed oil prices and the implementation of relevant policies may trigger market attention and discussion on the entire oil industry, affect market participants' confidence and expectations in other oil markets, and thus affect their price trends. 

➬ Investment and speculation: Changes in market sentiment may also attract more investment and speculative funds to enter the oil market, increase market volatility, and affect the prices of other oils. The rise in rapeseed oil prices will affect the prices of other oils and fats through changes in consumer behavior, adjustments in market supply and demand, linkage effects of the industrial chain, and overall market sentiment and expectations. This policy is in response to the Canadian government's announcement in 2024 that it will impose a 100% tariff on Chinese electric vehicles from October 1. 2024. and a 25% tariff on Chinese steel and aluminum products from October 22. 2024.

Canada's unilateral imposition of tariffs disregards objective facts and World Trade Organization rules. It is a typical trade protectionist practice, constitutes a discriminatory measure against China, seriously infringes on China's legitimate rights and interests, and undermines China-Canada economic and trade relations. China urges Canada to view bilateral economic and trade cooperation rationally, respect objective facts, abide by World Trade Organization rules, and immediately correct its wrong practices.