Alberta (Rural Roots Canada) – China has slapped retaliatory tariffs on Canadian canola and other agricultural products in response to trade restrictions imposed by Canada last year.

The tariffs, set to take effect March 20, are a response to Canada’s decision last fall to impose duties on Chinese-made electric vehicles, steel, and aluminum products. China’s Minister of Commerce launched an anti-discrimination investigation and is moving ahead with these tariffs as a result.

The retaliatory tariffs include a 100% duty on Canadian canola oil and canola meal. Peas, pork, and seafood will also be subjected to tariffs. These trade measures are separate from China’s anti-dumping investigation into imports of Canadian canola seed which is ongoing.

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In a joint statement by the Canola Council of Canada (CCC) and the Canadian Canola Growers Association (CCGA), the two organizations call this a devastating blow to canola farmers.

“New tariffs from China on Canadian canola oil and meal will have a devastating impact on canola farmers and the broader value chain at a time of increased trade and geopolitical uncertainty,” says Chris Davison, CCC President & CEO.

CCGA President & CEO, Rick White, agrees, pointing to the ongoing global trade chaos as an unprecedented situation for farmers.

“With this announcement, Canadian canola farmers are facing an unprecedented situation of trade uncertainty from our two largest export markets only weeks before planting begins,” says White. “The impact of the federal government’s trade policy decisions is now playing out at the farmgate, making it imperative that government respond with a plan for financial compensation commensurate with the losses incurred.”

China’s newest tariffs are the latest in an ongoing global trade tit-for-tat involving major economies including the United States, Canada, and Mexico. In October, Ottawa introduced a 100% surtax on Chinese-made EVs, and a 25% tariff on steel and aluminum imports, a decision that China criticized for undermining trade relations and disrupting commerce.

The CCC and the CCGA are calling on the federal government to immediately engage in discussions with China to sort this out. “We urge the federal government to immediately engage with China, with a view to resolving this issue,” says Davison.

Canola is a key agricultural contributor to the Canadian economy, representing almost $44 billion annually while helping to support almost 40,000 farmers nationwide. China is a major market for Canadian canola and related products. In 2024, Canada exported nearly 2 million metric tonnes of canola meal worth $918 million and another 15,000 metric tonnes of canola oil, valued at almost $21 million to China.