China imposes 75.8% tariff on Canadian Canola Oil

China announced preliminary anti-dumping duties on Canadian canola imports this week, escalating a year-long trade dispute that began with Ottawa’s imposition of tariffs on Chinese electric vehicle imports last August.
China’s Ministry of Commerce (MOFCOM) announced the imposition of a 75.8% duty, collected in the form of a deposit, on all Canadian canola seed shipments as of August 14, 2025.
The Canadian government disputed the Chinese finding saying in a statement the country does not dump canola and that it was “deeply disappointed” with China’s decision, but remained open to dialogue. “Canada is committed to ensuring fair market access for our canola industry and we remain ready to engage in constructive dialogue with Chinese officials to address our respective trade concerns,” International Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald said in the statement.
The Canola Council of Canada (CCC) and Canadian Canola Growers Association (CCGA) also expressed their deep disappointment with the preliminary ruling by China’s Ministry.
“With this preliminary determination of dumping for canola seed together with the existing 100% anti-discrimination tariffs on canola meal and oil, the Chinese market is effectively closed to the Canadian canola industry,” said Chris Davison, President and CEO of the Canola Council of Canada. China is Canada’s second largest market for canola and canola products with exports to China valued at $4.9 billion in 2024.
With an economic impact of $43.7 billion annually, the Canadian canola industry is an economic engine for the Canadian economy, supporting over 200,000 jobs across the country and accounting for over $16 billion in wages.
The ruling by China is timed for impact as farmers who planted canola in 2025 are preparing for harvest in a few weeks time. “This tariff will have an immediate and substantive impact on farmers’ marketing opportunities for the 2025 canola crop,” says Rick White, President & CEO of CCGA. “Canadian farmers are globally competitive and if a solution is not found swiftly, the impact will be quickly felt on our farms and in our rural communities.”
The preliminary determination and its associated duty create significant additional uncertainty and volatility in the global marketplace. Exports to China of canola and canola products provide an important demand signal for the Canadian canola industry. The absence of this signal will have significant and widespread impacts across the canola value chain. 

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