China’s Tariffs Threaten Billions in Canadian Canola Trade

Canadian canola farmers are bracing for major financial losses after China imposed a 75.8% tariff on raw canola imports, adding to earlier levies on canola oil, meal, peas, seafood, and pork. The move comes just as the harvest season begins and is expected to sharply reduce trade between the two countries.
Canola is one of Canada’s most valuable agricultural commodities, worth over $40 billion annually and employing more than 200,000 people. China, the largest global buyer of Canadian canola, uses it primarily for animal feed in aquaculture. Farmers say the tariffs have already caused prices to drop by about $30 per tonne, cutting deeply into profits and threatening tens of thousands of dollars in annual income for individual producers.
The dispute appears linked to Canada’s 100% tariff on Chinese electric vehicles, introduced to protect the domestic auto industry. Finding replacement markets for millions of tonnes of canola will be challenging, and while farmers are working to expand domestic processing, the shift will take time.
Industry leaders are urging the federal government to provide immediate support, warning that the impact could rival or exceed that of past tariff disputes in other major Canadian industries. In the meantime, many farmers say they will have to endure the economic hit and hope for a resolution.