Canada is launching an anti-dumping investigation into truck body imports from China, just as Prime Minister Mark Carney is trying to ease trade tensions with the east Asian country. 

The Canada Border Services Agency said on October 24 that it has initiated a probe to determine if truck bodies imported from producers operating in China are sold at unfair prices or being subsidized. It follows a complaint by Canadian truck body manufacturers Morgan Canada Corp. and Morgan Transit Corp., who allege that dumped and subsidized imports have undercut prices, decreased bookings and cost them sales. 

The investigation comes ahead of Carney’s trip to the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea, where he hopes to meet with Chinese President Xi Jinping in an effort to lessen an escalating trade war between Canada and its second-largest trading partner. China has imposed tariffs on Canadian canola, seafood and pork in retaliation for Canada’s levies on Chinese electric vehicles, steel and aluminum, which were imposed last year to align with U.S. policies against key Chinese sectors. 

Trade ties among Canada, the U.S. and China have become strained since President Donald Trump entered the White House in January. On October 24, the Trump administration launched its own new trade investigation into China ahead of the highly-anticipated summit between the countries’ leaders in South Korea. Trump has threatened to add a new 100% tariff effective November 1 on China if the country does not relent on rare-earth restrictions.

Meanwhile, Canada’s trade dispute with the U.S. escalated on October 23 after Trump cut off negotiations over an advertisement, sponsored by Ontario, that was critical of U.S. tariffs on Canadian goods. Canada’s auto, steel, aluminum and timber industries all have been severely disrupted by U.S. levies imposed earlier this year.  

Morgan Canada, with operations in Bolton, Ontario, and Morgan Transit, with operations in Laval, Quebec, are both units of Houston-based JB Poindexter & Co. Inc.

The border service agency said it will issue a decision on its inquiry into damage to local manufacturers by December 23 and that the Canadian International Trade Tribunal will make its ruling on dumping and subsidies by January 22 next year.