China’s Canola Tariff is a Gut Punch — and Ottawa is Looking for Plan B

Federal and provincial leaders vow to defend producers and seek new market opportunities.

Canada’s canola industry just took a heavy hit — and Ottawa is trying to figure out how to hit back.

The Heath MacDonald, Minister of Agriculture and Agri-Food, issued a sharp statement this week after meeting with Saskatchewan officials and canola industry leaders to discuss China’s decision to impose a massive new trade barrier.

“Earlier this month, China announced a preliminary anti-dumping duty on imports of canola seed from Canada of 75.8%, which entered into force on August 14, 2025,” MacDonald said. “This was in addition to existing trade measures resulting from China’s anti-discrimination investigation, including the 100% tariffs on Canadian canola oil and meal. Our hard-working producers provide world-class canola products to Canadians and international trading partners and the Government of Canada is profoundly disappointed with China’s announcement.”

Ottawa’s Response

The minister met with colleagues — including Buckley Belanger, Secretary of State (Rural Development), and Kody Blois, Parliamentary Secretary to the Prime Minister — alongside Saskatchewan Premier Scott Moe, Agriculture Minister Daryl Harrison, and Trade and Export Development Minister Warren Kaeding. The talks brought together government and industry leaders to map out next steps.

“At today’s meeting, 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.”

Why It Matters

Canola is one of Canada’s biggest export drivers. The crop covers over 21 million acres annually, generating $12.9 billion in farm cash receipts in 2024 — the single most valuable principal field crop. China is by far the top export market, representing 67% of Canada’s canola seed exports, valued at roughly $4 billion last year.

That heavy reliance on China leaves Canadian producers exposed — and a tariff of nearly 76% could sharply reduce trade flows overnight.

The Bottom Line

“Canola is one of our most valuable agricultural exports and an important driver of the Canadian economy,” MacDonald said. “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.”

For now, the federal government is signaling it wants both short-term relief for farmers and a long-term plan to diversify export markets. But with billions on the line and China showing no signs of backing down, Canada’s canola sector is bracing for a turbulent year ahead.

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