Tariffs, Tariffs Everywhere
It has been a difficult year to date for Canadian canola farmers, who have dealt with the uncertainty wrought by the US’ recent unpredictable tariff policies, and have now taken a major blow from our other top trading partner.
On March 20, China’s Ministry of Commerce enacted a 100% tariff on Canadian canola oil and meal and pea imports, along with 25% duties on seafood and pork. Canola seed exports currently remain exempt from tariffs. This was done in retaliation for Canada’s levies of 100% on Chinese electric vehicles and 25% on their steel and aluminum products, introduced in October 2024. The Chinese ministry have described the Canadian imposed tariffs as serious violations of World Trade Organization rules and as discriminatory measures that severely harm China’s legitimate rights and interests.
With planting season fast approaching, farmers in Alberta, Saskatchewan and Manitoba, who depend heavily on Chinese exports, are wary of the impending financial losses. The tariffs have the potential to significantly affect Canada’s agriculture and agri-food industry due to the size of China’s market for Canada’s canola and canola products. Per the Canola Council of Canada (CCC),our canola exports to China were valued at CA$4.9 billion in 2024, including 2 million metric tonnes of canola meal, valued at CA$918 million, and 15,351 metric tonnes of canola oil, valued at CA$20.6 million.
Federal ministers have issued statements affirming their support for farmers, but of course no direct compensation plan has been announced with no negotiations between the governments seemingly on the horizon. Figuratively, this is looking like a stormy season for our farmers.