New Chinese tariffs on Canadian canola products to have 'devastating impact' on farmers

China’s Ministry of Commerce (MOFCOM) has announced the outcome of its anti-discrimination investigation initiated against Canada in September 2024 as a result of the federal government’s tariffs on Chinese electric vehicles, steel and aluminum. 

China’s State Council Tariff Commission will impose a 100 per cent tariff rate on Canadian canola oil and canola meal along with several other Canadian agricultural commodities as of March 20, 2025.

Tariffs from the State Council Tariff Commission resulting from the anti-discrimination investigation are separate and distinct from China’s anti-dumping investigation into imports of Canadian canola seed, which is ongoing.

“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, Canola Council of Canada (CCC) President & CEO. “We urge the federal government to immediately engage with China, with a view to resolving this issue.”

China is a highly valued market for Canadian canola and canola products.

In 2024, total exports to China were valued at almost $5 billion and included 2 million metric tonnes of canola meal, valued at $918 million and 15,351 metric tonnes of canola oil, valued at $20.6 million.

The tariff rates announced by the State Council Tariff Commission will be prohibitive to the export of Canadian canola oil and meal to China.

“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,” stated Rick White, Canadian Canola Growers Association (CCGA) President & CEO. “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.”