China imposes 100 per cent tariff on Canadian canola products amid trade dispute

China’s Ministry of Commerce (MOFCOM) has concluded it’s anti-discrimination investigation against Canada, which began in September 2024 following the Canadian government’s tariffs on Chinese electric vehicles, steel, and aluminum.

As a result, China’s State Council Tariff Commission will impose a 100 per cent tariff on Canadian canola oil, canola meal, and several other agricultural commodities starting March 20, 2025.

These tariffs are separate from China’s ongoing anti-dumping investigation into Canadian canola seed imports.

“China’s new tariffs on Canadian canola oil and meal will severely impact canola farmers and the broader value chain amid rising trade and geopolitical tensions,.” says Chris Davidson, President and CEO of the Canola Council of Canada (CCC). “We urge the federal government to engage with China immediately to resolve this issue.”

China is a crucial market for Canadian canola products. In 2024, exports for China were nearly $5 billion, including 2 million metric tonnes of canola meal worth $918 million and 15,351 metric tonnes of canola oil valued at $20.6 million. The newly announced tariffs will significantly hinder the export of these products to China.

“With this announcement, Canadian canola farmers are facing unprecedented grade uncertainty from our two largest export markets just weeks before planting season,” says Rick White, President and CEO of the Canadian Canola Growers Association (CCGA). “The federal government’s trade policy decisions are now affecting farmers directly, making it essential for the government to provide financial compensation for the losses incurred.”