Canada vows support for farmers as China imposes canola tariff

Canada stands “shoulder to shoulder” with its canola producers and will defend the industry after China imposed sweeping new tariffs on Canadian canola, says Agriculture Minister Heath MacDonald.

“Canola is one of our most valuable agricultural exports and an important driver of the Canadian economy. We are steadfast in our commitment to defend and diversify Canadian trade and we will stand shoulder to shoulder in our support for Canada’s hard-working canola producers, workers and exporters,” MacDonald said on Aug. 21 after meeting with Saskatchewan Premier Scott Moe, Agriculture Minister Daryl Harrison, Trade and Export Development Minister Warren Kaeding and key canola industry stakeholders and exporters.

“We agreed on the importance of working together to ensure fair market access for the canola industry and engaging in constructive dialogue with Chinese officials to address each other’s respective trade concerns,” MacDonald said. “Our discussion also touched on support options for producers, including the government’s suite of business risk management (BRM) programs and how Canada is developing a comprehensive industrial strategy to help businesses develop new export opportunities in international markets.”

On Aug. 12, China’s Ministry of Commerce announced duties of 75.8 per cent on Canadian canola seed, on top of 100 per cent tariffs already applied to canola oil and meal. Beijing said the measures stem from an anti-dumping probe, a claim Canada rejects.

Prime Minister Mark Carney pledged support for producers. “Canada does not dump canola. Canadian canola products meet the highest standards, and our inspection systems are robust,” Carney wrote on social media. “We will advance a constructive dialogue with Chinese officials … while diversifying our trade abroad and supporting our canola producers at home.”

Industry leaders warned the tariffs could have devastating impacts. Chris Davison, President and CEO of the Canola Council of Canada, said China is a “highly valued and important market” and called the ruling “certainly disappointing.” He stressed: “Most importantly in the immediate term is the economic impact this is going to have on the industry.”

Davison urged Ottawa to step up: “We are going to work with and encourage the federal government to do what's necessary to effectively address these trade issues. Given the magnitude of the impact of these actions from our second-largest export market, the industry is going to need some form of support … both financial components and policy supports.”

Rick White, President and CEO of the Canadian Canola Growers Association, warned the measures will be felt quickly on farms. “This tariff will have an immediate and substantive impact on farmers’ marketing opportunities for the 2025 canola crop,” he said. “If a solution is not found swiftly, the impact will be quickly felt on our farms and in our rural communities.”

With an annual economic impact of $43.7 billion, the canola sector supports more than 200,000 jobs and accounts for $16 billion in wages. Both the CCC and CCGA said urgent federal support will be needed.

Moe said Saskatchewan will play a role in advancing solutions but noted final responsibility rests with Ottawa. “[Canola is an] important issue, not just to Saskatchewan, but to Canada,” he said. “It is going to be the Prime Minister of Canada, Prime Minister Carney, and President Xi that ultimately are going to speak on behalf of their countries.” 

He confirmed he will travel to China, Japan and South Korea on a trade mission from Sept. 6 to 12. 

Conservative Leader Pierre Poilievre accused Carney of weakness, urging retaliation. “We need a Prime Minister who will actually stand up for all Canadians, including and especially our prairie producers,” he said. “It’s time for a strong voice to stand up for the West.”