Farm Groups Applaud New Agreement on Tariffs

The Canola Council of Canada and the Canadian Canola Growers Association on Friday welcomed news of significant tariff relief for Canadian canola. 

Under a preliminary agreement reached between Canada and China, tariffs on Canadian canola seed are expected to fall to 15% from the current combined rate of approximately 85% as of March 1, 2026. The agreement also includes relief for other key agri-food products. Canadian canola meal, peas, lobsters and crabs are expected to be exempt from China’s so-called “anti-discrimination” tariffs from March through at least the end of 2026. 

As part of the agreement, Canada has agreed to allow up to 49,000 Chinese electric vehicles per year to enter the Canadian market at a 6.1% most-favoured-nation tariff, replacing the previous 100% rate. 

Rick White, president and CEO of the Canadian Canola Growers Association, said in a statement the deal comes at a critical time for producers. With much of the 2025 canola crop still stored on farm and planting of the 2026 crop only months away, growers are looking for predictability and confidence in their ability to market canola, he said.  

“We are pleased to see this significant progress and will be looking for resumption of canola movement in the future,” White said. 

China is Canada’s largest market for canola seed and second-largest market for canola meal. Canadian exports of canola and canola products to China were valued at about $5 billion in 2024, but that figure is expected to drop to less than half in 2025 due to the trade dispute. Both CCC and CCGA said the impacts have been felt across the entire canola value chain. 

Ottawa said the deal could unlock close to $3 billion in new export orders across agriculture and related sectors, with benefits extending beyond oilseeds to pulses, seafood, and downstream processing.  

The Agricultural Producers Association of Saskatchewan also applauded the deal, highlighting benefits for Saskatchewan’s canola and pea producers. APAS president Bill Prybylski called the agreement an important breakthrough after years of export barriers, while noting that key challenges remain. The deal does not address canola oil, which continues to face a 100% tariff, or pork products, which are subject to a 25% levy. 

Canola futures posted moderate gains in trading today, rising about $3-$5/tonne.  

While farm groups largely welcomed the agricultural provisions, the broader agreement drew criticism in Ontario. Premier Doug Ford sharply criticized the decision to lower tariffs on Chinese electric vehicles, warning it could harm Canadian auto workers and risk access to the U.S. market. 

For canola producers, however, the focus remains on renewed access to China and the hope that Friday’s announcement signals a more stable and predictable trading relationship ahead.