Government of Canada announces support for agricultural sector following the imposition of tariffs by China

Ottawa, Ontario - Agriculture and Agri-Food Canada

Our hard-working producers provide world-class food to Canadians and the world. Their products meet the highest standards, our inspection systems are robust, and we adhere to rules-based trade.

Following the conclusion of China’s domestic ‘anti-discrimination’ investigation launched against Canada on September 26, 2024, China imposed 100% tariffs on canola oil, canola meal and peas, as well as 25% tariffs on certain pork, fish and seafood products. The Government of Canada is deeply disappointed by this decision, which will hurt Canadian farmers, harvesters and businesses, and will raise prices and diminish choice for Chinese customers, as well as in the agriculture, fish and seafood, retail, restaurant, and food-preparation industries.

The agriculture sector is experiencing multiple challenges, including the tariffs imposed by China, trade uncertainty with the United States, and other risks like animal disease. To help our hard-working producers get through these challenges, today, the Honourable Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development announced supports for the agricultural sector through AgriStability.

AgriStability offers affordable, whole farm protection to support producers when challenges are beyond their capacity to manage. The additional proposed supports include increasing the compensation rate from 80% to 90% and doubling the current payment cap to $6 million for the 2025 program year.

To get money to producers faster, the Government of Canada has also provided provincial and territorial governments with the option to proactively enter into an agreement to issue interim payments at a higher payment rate and initiate Targeted Advance Payments in the event of tariffs, or for the hog sector in the event of African Swine Fever. In provinces and territories that adopt these enhancements, it would mean producers enrolled in AgriStability will be eligible to apply for an interim payment up to 75% of their estimated final payment for the 2025 program year. Additionally, an administrator will be able to establish a Targeted Advance Payment for the 2025 program year, for example, where analysis shows that market disruptions have resulted in a sufficient loss to trigger AgriStability payments for a particular sector or region.

The Government of Canada will always stand up for the Canadian agricultural industry and support their interests and success at home and in markets abroad. The Government of Canada will continue to work with provincial and territorial partners and industry stakeholders moving forward and remains open to engaging in constructive dialogue with China to resolve our trade differences on the basis of mutual respect and equality.