China responds to Canada's EV tariffs with rapeseed probe

China will start an anti-dumping probe into rapeseed imports from Canada, with trade tensions escalating after Prime Minister Justin Trudeau's government imposed tariffs on Chinese-produced electric vehicles (EVs), steel and aluminium.

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Beijing is initiating measures following relevant restrictive actions taken by Canada, according to a statement from the Ministry of Commerce. It will take all necessary actions to safeguard the legitimate rights and interests of Chinese companies, the agency added.

Canada in August announced a 100 per cent levy on electric cars and 25 per cent on steel and aluminium, joining Western allies to protect domestic manufacturers.

Rapeseed is used to crush into oil for cooking and fuel, and meal for feeding animals, and China is the world's second-biggest importer of the commodity.

The most actively traded rapeseed meal and rapeseed oil futures on China's Zhengzhou Commodity Exchange surged at least 6 per cent on Sept 3. Canola futures in North America fell by the exchange limit in the biggest intraday loss since August 2022, on fears that lower Chinese demand could result in a glut at home.