China’s Retaliatory Tariff Puts $5 Billion Canola Trade at Risk

A full-blown trade war is breaking out with nations starting to apply tariffs to imported goods from other nations including a 100% retaliatory tariff by China on Canadian canola. Canola Council of Canada President and CEO Chris Davison says this would devastate canola farmers and the Canadian economy. “These tariffs that are specific to Canadian canola meal and oil are at prohibitive levels. So, it would be expected to have a very significant impact on the Canadian industry.” China is Canada’s second-largest market for canola in terms of economic activity with a 2024 export value close to five billion Canadian dollars. 100 percent tariffs like those imposed by China could impart lasting damage to the Canadian ag industry and economy. “We’ve been very clear for some time now with the Canadian federal government about the need for compensation to support the industry to address losses that will be incurred as a result of these types of activities. That’s something we’ve made very clear for some time now and we look forward to continuing that engagement with the government in that regard.”