Canadian Canola Farmers Face Impact from Chinese Retaliatory Tariffs

Canadian Farmers Brace for Major Losses as China Imposes Retaliatory Tariffs

Canadian farmers are facing significant financial strain after China announced steep retaliatory tariffs on key agricultural exports, including canola, pork, and other food commodities. The tariffs, set to take effect later this month, are in response to Canada’s duties imposed last fall on Chinese-made electric vehicles, as well as steel and aluminum products.

Beijing’s latest move includes a 100% tariff on canola oil and peas, along with a 25% tariff on pork and aquatic products—measures that closely mirror Canada’s trade actions against Chinese imports.

Chris Davison, president of the Canola Council of Canada, warned that the tariffs will have a widespread impact on the industry. He emphasized that China is one of the largest markets for Canadian canola, representing nearly $5 billion in export value.

“The impacts will be felt across the industry, starting with farmers who grow the crop every year and extending to seed and input suppliers, grain companies, processors, and exporters,” Davison said. “We expect to work with the Canadian government quickly to address this situation and seek a resolution as soon as possible.”

In a joint statement issued late Saturday, International Trade Minister Mary Ng, Agriculture Minister Lawrence MacAulay, and Fisheries Minister Diane Lebouthillier expressed disappointment over China’s decision.

“Our hardworking farmers and fishers provide world-class food to Canadians and global partners,” the statement read. “We remain committed to defending Canadian workers and will stand in full support of our agricultural and fishing industries.”

Saskatchewan Premier Scott Moe also weighed in, criticizing the situation as an unfair consequence of tariffs on Chinese electric vehicles.

“Our canola industry is being caught in the crossfire due to tariffs on Chinese EVs, which nobody wants, to protect North American EVs, which few can afford,” Moe said.

China has long been accused of using state subsidies to dominate global markets, producing goods at artificially low prices to undermine North American and European competitors. The latest round of tariffs is expected to take effect on March 20, further straining Canada’s already tense trade relations.

This isn’t the first time Beijing has targeted Canadian canola. In 2019, China restricted canola export licenses, widely seen as retaliation for Canada’s arrest of senior Huawei executive Meng Wanzhou at the request of U.S. authorities.