World
China hits back at Canada with fresh agriculture tariffs
China announced tariffs on over $2.6 billion worth of Canadian agricultural and food products on Saturday, retaliating against levies Ottawa introduced in October and opening a new front in a trade war largely driven by U.S. President Donald Trump’s tariff threats.
The levies, announced by the commerce ministry and scheduled to take effect on March 20, match the 100% and 25% import duties Canada slapped on China-made electric vehicles and steel and aluminium products just over four months ago, Reuters reported.
By excluding canola, which is also known as rapeseed, and was one of Canada’s top exports to the world’s No.1 agricultural importer prior to China investigating it for anti-dumping last year, Beijing may be keeping the door open for trade talks.
But the tariffs also serve as a warning shot, analysts say, with the Trump administration having signalled it could ease 25% import levies the White House is threatening Canada and Mexico with if they apply the same extra 20% duty he has slapped on Chinese goods over fentanyl flows.
“Canada’s measures seriously violate World Trade Organization rules, constitute a typical act of protectionism and are discriminatory measures that severely harm China’s legitimate rights and interests,” the commerce ministry said in a statement.
China will apply a 100% tariff to just over $1 billion of Canadian rapeseed oil, oil cakes and pea imports, and a 25% duty on $1.6 billion worth of Canadian aquatic products and pork.
“The timing may serve as a warning shot,” said Dan Wang, China director at Eurasia Group in Singapore. “By striking now, China reminds Canada of the cost of aligning too closely with American trade policy.”
“China’s delayed response (to Ottawa’s October tariffs) likely reflects both capacity constraints and strategic signalling,” she added. “The commerce ministry is stretched thin, juggling trade disputes with the U.S. and European Union.”
“Canada, a lower priority, had to wait its turn.”
The Canadian embassy in Beijing did not immediately respond to a Reuters request for comment.
Canadian Prime Minister Justin Trudeau said in August that Ottawa was imposing the levies to counter what he called China’s intentional state-directed policy of over-capacity, following the lead of the United States and European Union, both of which have also applied import levies to Chinese-made EVs.
In response, China in September launched an anti-dumping investigation into Canadian canola imports. More than half of Canada’s canola exports go to China and the trade was worth $3.7 billion in 2023, according to the Canola Council of Canada.
“The investigation on Canadian canola is still ongoing. That canola was not included in the list of tariffs this time might also be a gesture to leave room for negotiations,” said Rosa Wang, an analyst with agricultural consultancy JCI.
Beijing could also be hoping that a change in government in Ottawa makes it more amenable. Canada’s next national election must be held by October 20.
China is Canada’s second-largest trading partner, trailing far behind the United States. Canada exported $47 billion worth of goods to the world’s second-largest economy in 2024, according to Chinese customs data.
“To be honest I don’t understand why they are doing this one at all,” said Even Pay, agriculture analyst at Trivium China.
“I expect Beijing will use the election and change of leader as an opportunity to reset relations as they did with Australia,” she added.
China in 2020 introduced a series of tariffs, bans and other restrictions on key Australian exports, including barley, wine, beef, coal, lobster and timber in retaliation to Canberra calling for a COVID origins probe.
Beijing did not begin lifting the bans until 2023, one year after Australian Prime Minister Anthony Albanese ousted Scott Morrison, who had called for the inquiry.
World
Putin agrees to European role in Ukraine peace talks as Zelenskiy welcomes move
Russian President Vladimir Putin has agreed to include European representatives in the next round of Ukraine peace talks, a US envoy said, while Ukrainian President Volodymyr Zelenskiy welcomed the prospect, calling it an important step towards advancing diplomatic efforts.
US special envoy Steve Witkoff announced the development following his meeting with Putin at the Kremlin on Thursday. He said European participation was important, as the countries were partners in efforts to resolve the conflict.
Witkoff and fellow US envoy Jared Kushner later travelled to Ireland, where they met with Zelenskiy on the sidelines of a European summit in Dublin.
The Ukrainian president welcomed the prospect of European involvement and expressed hope that the next round of negotiations would focus on de-escalation and possible ceasefire arrangements.
Zelenskiy said it was important to remove obstacles to the negotiations and establish an agenda that could help reduce tensions and move the conflict towards a peaceful resolution.
However, Putin stressed that Moscow had never opposed dialogue with European countries, claiming that European governments had been responsible for ending direct engagement with Russia.
The Russian president also warned that deploying Western troops in Ukraine under a potential peace agreement would be considered a security threat by Moscow and could lead to a resumption of hostilities.
Putin urged Washington to work with its European allies to determine whether they genuinely wanted peace or continued conflict in Ukraine.
Meanwhile, Kremlin aide Yuri Ushakov did not confirm European participation in the next round of talks and criticised the current European position on the conflict, describing it as a path towards an endless war.
The latest developments follow two days of trilateral negotiations between Russian, Ukrainian and US representatives in Abu Dhabi, marking the first direct US-mediated talks between Moscow and Kyiv in nine months.
Both sides reported some progress but acknowledged that major disagreements remain, particularly over territorial issues. Russia currently controls about one-fifth of Ukraine, while Kyiv continues to reject surrendering the remaining parts of the eastern Donbas region.
Separately, Zelenskiy raised concerns over restrictions affecting Starshield satellite communications, saying the disruptions had affected the entire front line. The Ukrainian president warned that limitations on the US-made system could have significant implications for Ukraine’s military operations.
The developments highlight continued diplomatic efforts to end the war, although major differences between Russia, Ukraine and their Western partners remain unresolved.
World
Trump says further US attacks on Iran ‘highly unlikely’ as peace talks gain momentum
Although Trump played down the prospect of renewed attacks, he warned that US forces remained prepared to respond if circumstances changed.
US President Donald Trump has said further American military strikes against Iran are “highly unlikely”, signalling a possible shift towards de-escalation as diplomatic efforts to end the conflict gather momentum.
Speaking to reporters at the White House on Monday, Trump said Iran was effectively defeated militarily and suggested Washington was prepared to maintain the current situation while negotiations continued.
“Iran militarily is effectively over,” Trump said, adding that there was “positive momentum” behind efforts to reach an agreement.
“We’re just keeping it the status quo,” he said, explaining that the decision was largely being taken at the request of neighbouring countries.
Although Trump played down the prospect of renewed attacks, he warned that US forces remained prepared to respond if circumstances changed.
“We’re locked and loaded,” he said, while describing further strikes as “highly unlikely”.
The comments come amid growing pressure on the Trump administration to bring the conflict to an end, following bruising midterm election results for Republicans last week.
Several senior party figures, including Vice-President JD Vance, have pointed to the war as a factor behind the party’s poor performance.
Trump had previously indicated that US forces carried out what he described as limited strikes on an Iranian island near the strategically important Strait of Hormuz.
However, in a television interview broadcast on Sunday, he said he currently saw no reason to escalate the military campaign.
He also stopped short of formally declaring the war over, arguing that Washington still had to protect its Gulf allies from possible Iranian attacks.
The US naval blockade of Iranian ports, he suggested, was helping maintain security across the region.
Global oil prices fell further following Trump’s latest remarks, with Brent crude dropping more than 1% to around $91.50 a barrel, while US crude also declined.
Gulf diplomacy intensifies
Trump’s comments followed a meeting with Qatari Prime Minister Sheikh Mohammed bin Abdul Rahman Al Thani at the White House on Monday.
The US president described their discussions as excellent, while the Qatari leader said he had held positive talks with Trump and Vance on reaching an agreement and restoring regional peace.
Diplomatic efforts to end the conflict have largely been conducted through intermediaries since the war erupted following joint US-Israeli strikes against Iran in February.
Saudi Arabia, Qatar and the United Arab Emirates are among Washington’s Gulf partners that have been targeted by Iranian attacks during the conflict, while security concerns have also caused significant disruption to regional air travel.
Political pressure mounts in Washington
Meanwhile, the war is generating further political tensions in Washington.
Republican Congressman Thomas Massie on Monday announced plans to force a House of Representatives vote this week on impeaching Defence Secretary Pete Hegseth over his handling of the conflict.
Hegseth, who has received Trump’s backing, dismissed the threat, describing Massie’s effort as a “sham”.
The impeachment initiative is unlikely to succeed while Republicans retain control of Congress. However, Democrats have indicated they could pursue the matter when the new congressional session begins in January.
For Trump, the challenge is increasingly twofold: finding a diplomatic exit from the conflict while managing mounting political pressure at home and reassuring US allies across the Gulf.
World
First Muslim US senator-elect El-Sayed calls for review of aid to Pakistan
He also called for restrictions on US arms sales to Israel, alleging that some American-supplied weapons were being used in actions involving what he described as genocide and apartheid.
Abdul El-Sayed, the first Muslim elected to the US Senate, has called on Washington to reconsider its financial and military assistance to Pakistan and several other countries, arguing that American taxpayer money should not be used to support violations of international law.
El-Sayed, a Democrat who recently defeated Republican candidate Mike Rogers in Michigan, said the United States must ensure that its foreign assistance policies are consistent with international law.
In an interview with ABC, he stressed that the issue should not be limited to Israel, but should also include Pakistan, Egypt and Jordan.
“When we are giving money to a country that is using our money to violate international law, that seems to me a good place to start,” El-Sayed said.
His remarks come after US President Donald Trump announced plans to end approximately $4 billion in annual military assistance to Israel by the end of the year.
El-Sayed welcomed Trump’s proposal to reduce military aid to Israel, saying he agreed with the president’s approach.
He also called for restrictions on US arms sales to Israel, alleging that some American-supplied weapons were being used in actions involving what he described as genocide and apartheid.
The United States currently provides Israel with $3.8 billion in annual military assistance under an agreement that remains in effect until 2028.
However, El-Sayed’s criticism extends beyond Israel. He has also questioned US military assistance to Egypt, Saudi Arabia, Jordan and Pakistan, arguing that American taxpayer money should instead be directed towards domestic priorities.
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