Farmers React as Canola Prices Drop Amid China’s New Tariffs

Farmers React as Canola Prices Drop Amid China’s New Tariffs
Aug 12, 2025
By Mathew Murphy
Assistant Editor, North American Content, Farms.com

Producers across Western Canada weigh the impact of a 75.8% anti-dumping duty on canola imports and what it means for the season ahead.

Canola markets took a sharp turn this week after China announced a provisional 75.8% anti-dumping duty on Canadian canola imports, effective August 14.  (Read: China Imposes 75.8% Tariff on Canadian Canola, Escalating Trade Dispute.)

On one Agriville.com forum, producers described the news as an unwelcome jolt during a critical stage of the season.

“This $1 per bushel drop today takes all the profit out of an average crop and turns a below-average crop into a loser,” one farmer said, adding that fertilizer bought earlier in the year now looks far less economical.

Several posters speculated on the timing of the announcement.

“They made the announcement just as harvest is about to begin,” one wrote. “There is harvest pressure still to come which will drive the price down further yet.”

Others noted that similar actions have happened before, with China temporarily depressing prices before making large purchases.

The conversation also broadened into concerns about wider trade risks.

Some farmers wondered what might happen if the U.S. were to impose similar measures on Canadian canola and its byproducts.

Others discussed whether falling crop prices might eventually lead to relief in input costs — though not everyone was optimistic. “Wonder if the drop in canola will result in a drop in fertilizer prices? [sarcasm emoji]” one user joked.

A few posters drew comparisons to other sectors, noting that industries like steel, forestry, and autos have seen targeted federal support during market disruptions.

While not all agreed on the role politics played, there was common ground in the worry about lost revenue and tighter margins.

Despite the downbeat tone, some farmers pointed to potential bright spots in other markets. “The good news is beans are trying to rally,” one commenter shared.

Still, with harvest pressure looming and global trade tensions ongoing, many on the Prairies are bracing for more price swings in the weeks ahead.

Check out the full thread, Canola market crash, and join the discussion!