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Trade war erupts; China slaps heavy duty on US products

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Trade war erupts; China slaps heavy duty on US products

In a tit-for-tat response to US imposing duties on importing aluminium and steel, China’s increased tariffs by up to 25 percent on 128 U.S. products have come into effect on Monday. The frozen pork, wine and certain fruits and nuts are included in the increased tariff regime.

The rise in tariffs was announced late on Sunday by China’s finance ministry and matched a list of potential tariffs on up to $3 billion in U.S. goods.

According to Xinhua, the Customs Tariff Commission of the State Council has decided to impose a tariff of 15 percent on 120 items of products imported from the United States including fruits and related products, and a tariff of 25 percent on eight items of imports including pork and related products from the country, according to a statement posted on the finance ministry’s website.

The statement said it was a countermeasure in response to a previous US move to slap tariffs on steel and aluminium imports.

Soon after the implementation of new US measures on March 23, Global Times warned that if the U.S. had thought China would not retaliate or would only take symbolic counter-measures, it can now “say goodbye to that delusion.”

“Even though China and the U.S. have not publicly said they are in a trade war, the sparks of such a war have already started to fly,” the editorial said.

China’s Ministry of Commerce said on Sunday that it was suspending its obligations to WTO to reduce tariffs on 120 U.S. goods, including fruit and ethanol. The tariffs on those products will be raised by an extra 15 percent. Pork and scrap aluminium will now be subjected to additional 25 percent tariff.

The Chinese commerce ministry said the US had “seriously violated” the principles of non-discrimination enshrined in World Trade Organization rules, and had also damaged China’s interests.

“China’s suspension of some of its obligations to the United States is its legitimate right as a member of the World Trade Organization,” it said. The Chinese Ministry has argued that differences between the two economies should be resolved through dialogue and negotiation.

The ministry said, “China’s suspension of its tariff concessions is a legitimate action adopted under WTO rules to safeguard China’s interests.”

China’s retaliatory tariffs came at a t time when trade tensions between Beijing and Washington has been mounting. It has already rocked global financial markets in the past week as investors feared a full-blown trade war between the two countries may damage the world growth.

According to Reuters, U.S. President Donald Trump is separately preparing to impose tariffs of more than $50 billion on Chinese goods intended to punish Beijing over U.S. accusations that China systematically misappropriated American intellectual property. Beijing denies the allegations.

China warned the US on Thursday not to open a Pandora’s Box and spark a flurry of protectionist practices across the globe.

China’s Communist party’s newspaper Global Times has recently said in an editorial that “There are some people in the West who think that China looks tough for the sake of a domestic audience, and would easily make concessions in the end. But they are wrong.”

According to 2017 trade statistics between the two countries, US imports worth goods of $505 billion and exports goods valuing just $130 billion having trade gap of $375 billion.

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Mark Carney’s win sparks hope for India-Canada relations reset

Mark Carney’s rise as Canada’s Prime Minister brings a renewed focus on repairing ties with India, as both countries seek cooperation in trade, education, and diplomacy.

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Mark Carney’s ascension to the role of Canada’s Prime Minister has brought renewed optimism for a diplomatic thaw between New Delhi and Ottawa, a relationship that faced serious setbacks under former Prime Minister Justin Trudeau. Carney, a former central banker and political novice, made it clear during his campaign that rebuilding bilateral ties with India would be among his foreign policy priorities.

Carney signals intent to revive ties

In his pre-election statements, Carney emphasised Canada’s need to diversify trade partnerships with nations that share democratic values—explicitly naming India. He said, “There are opportunities to rebuild the relationship with India. If I am Prime Minister, I look forward to the opportunity to build that.”

This approach marks a significant departure from the Trudeau administration’s strained relations with India, especially following the high-profile controversy in 2023 involving the killing of Khalistani separatist Hardeep Singh Nijjar. The diplomatic crisis escalated with the expulsion of six Indian diplomats and reciprocal steps from India, effectively freezing high-level exchanges and trade talks.

The road to reconciliation

Under Trudeau, India frequently accused Canada of harbouring extremist elements within its Sikh diaspora. The Indian government viewed this as a threat to its sovereignty, particularly amid rising incidents of pro-Khalistan demonstrations abroad.

Mark Carney, however, has taken a more pragmatic view, underlining the importance of restoring diplomatic balance and mutual respect. His vision of Canadian sovereignty also extends to redefining international alliances, with a push toward reducing dependency on its largest neighbour—the United States—and strengthening partnerships like the one with India.

Economic and educational prospects

The Comprehensive Economic Partnership Agreement (CEPA) between the two nations, stalled due to the diplomatic fallout, may see a revival under Carney’s leadership. In 2023, services trade between India and Canada was valued at CAD 13.49 billion. Both countries had been exploring collaboration in emerging sectors like AI, green energy, and education.

India continues to be one of the largest contributors to Canada’s immigrant population, with nearly 2.8 million people of Indian origin living in the country. Carney is likely to continue the liberal immigration policies, particularly benefiting Indian students and professionals. Over 427,000 Indian students currently study in Canada, playing a crucial role in its economy and labour force.

A cautious but hopeful turn

Carney’s victory offers both countries a diplomatic opportunity to reset a troubled chapter. With mutual interests in economic growth, technological advancement, and geopolitical balance, the groundwork is being laid for a more collaborative future.

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Several killed after car drives into street festival in Canada’s Vancouver

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A horrific incident unfolded at the Lapu Lapu ’25 Block Party in Vancouver, Canada, on Saturday, April 26, when a black SUV plowed into a crowd, leaving multiple people dead and several others injured, according to the Vancouver Police Department (VPD). The attack occurred just after 8 p.m. local time at the intersection of East 41st Avenue and Fraser Street, where hundreds had gathered to celebrate Filipino culture and honor Datu Lapu-Lapu, the Philippines’ first national hero, who famously defeated Spanish explorer Ferdinand Magellan in the 1521 Battle of Mactan.

The VPD confirmed the driver, a 30-year-old Vancouver man, was taken into custody at the scene, though the exact number of casualties remains undisclosed as emergency services continue to respond. “A number of people have been killed and multiple others are injured,” the VPD stated on X, adding, “We will provide more information as the investigation unfolds.” Social media footage captured the chaotic aftermath, showing a black SUV with a crumpled hood and deployed airbags, surrounded by motionless victims and frantic bystanders. Some videos depicted first responders and civilians tending to the injured, while others showed bloodied individuals lying on the street, underscoring the scale of the tragedy.

Vancouver Mayor Ken Sim expressed profound grief, calling the incident “horrific.” “We are shocked and saddened by what happened at the Lapu Lapu Day event. Police have confirmed multiple fatalities and injuries, and our thoughts are with Vancouver’s Filipino community during this devastating time,” Sim said in a statement. New Democratic Party MP Don Davies, describing the event as a “horrendous attack,” took to X to offer prayers for the victims and their families, reflecting the community’s anguish.

The Lapu Lapu Day Block Party, in its second year, is a vibrant celebration of Filipino heritage, recognized by British Columbia since 2023 as a day to honor Lapu-Lapu’s legacy of resistance against colonial oppression. The festival, featuring food trucks, performers, and cultural displays, drew a large crowd to Vancouver’s Sunset neighborhood, making the sudden violence all the more shocking.

As the investigation continues, authorities have not disclosed a motive or confirmed whether the act was intentional. The VPD’s major crime unit is leading the probe, and police are urging witnesses to come forward with information. The incident has cast a pall over Vancouver, prompting an outpouring of condolences from leaders like Canadian Prime Minister Mark Carney and British Columbia Premier David Eby, who vowed support for the affected community. For now, the Filipino community and the city at large mourn, grappling with the senseless loss at what was meant to be a joyous celebration.

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At least 115 injured after explosion at Iran’s Bandar Abbas port

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A massive explosion rocked the Rajaei port near Bandar Abbas in southern Iran on Saturday, April 26, injuring 406 people, according to the state-run IRNA news agency. The agency had earlier reported 281 injuries, citing Mojtaba Khaledi, spokesperson for Iran’s National Emergency Organization, before the toll surged as more victims were identified.

The blast occurred at the Rajaei port, a critical hub for container shipments handling approximately 80 million tons of goods annually. Videos circulating on social media captured thick black smoke rising from the site, while others showed shattered windows in buildings several kilometers away, underscoring the explosion’s intensity.

Authorities have yet to disclose the cause of the blast. While Iran frequently experiences industrial accidents, particularly at its aging oil facilities strained by international sanctions, state television explicitly ruled out any involvement of energy infrastructure in this incident. Mehrdad Hasanzadeh, a provincial disaster management official, told state TV that first responders were working to access the affected area, while efforts were underway to evacuate the site. He noted that the explosion originated from containers at the port but provided no further details. State TV also reported a building collapse triggered by the blast, though specifics remain scarce.

Located 1,050 kilometers southeast of Tehran on the Strait of Hormuz—a vital chokepoint for 20% of global oil trade—the Rajaei port’s strategic importance amplifies concerns about the incident. The explosion coincided with ongoing diplomatic talks in Oman between Iran and the United States, marking their third round of negotiations over Tehran’s accelerating nuclear program, adding a layer of complexity to the unfolding situation.

As rescue operations continue, the rising injury toll and lack of clarity about the blast’s cause have heightened anxiety in Iran, with authorities under pressure to provide answers and ensure the safety of those affected. The incident underscores the challenges faced by Iran’s critical infrastructure and the broader implications for regional stability amid delicate international discussions.

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