China has announced new tariffs targeting Canadian agricultural products, including canola, a move that could significantly impact Canada's economy. The tariffs, which target canola, pork, and other commodities, are set to take effect on March 20. China is a crucial market for Canadian canola, accounting for nearly $5 billion in export value. Canadian farmers now face the threat of losing a substantial portion of this market due to China's retaliatory tariffs.
The sudden imposition of 100% tariffs on canola oil and peas, along with 25% tariffs on pork and aquatic products, marks a significant escalation in trade tensions between Canada and China. The Chinese government implemented these tariffs in response to Canadian duties on Chinese electric vehicles, steel, and aluminum products. This trade conflict adds to the existing challenges Canada faces in its international trade relationships.
This is not the first time Beijing has targeted Canadian canola. In 2019, China leveraged canola export licenses as a pressure point amid political tensions following the detention of Huawei executive Meng Wanzhou. The latest tariffs are seen as another politically motivated response by China, this time directed at Canadian agricultural exports.
Saskatchewan Premier Scott Moe expressed concern over the effects on the province's canola industry, which he believes is unfairly caught in the crossfire of broader trade disputes.
“Put in the line of fire due to tariffs on Chinese EVs, which nobody wants, to protect North American EVs, which few can afford.” – Saskatchewan Premier Scott Moe.
The fallout from these tariffs is expected to be widespread across the Canadian canola industry. Chris Davison, president of the Canola Council of Canada, warned of the prohibitive nature of these tariffs.
“The impacts will be widespread and will be felt across the industry, starting with farmers who grow the crop every year and extending beyond there to the companies that provide them with seeds and inputs … to grain companies and processors and ultimately to exporters.” – Chris Davison, president of the Canola Council of Canada.
In response to the tariffs, Davison emphasized the need for swift action from the Canadian government to address and resolve this trade issue.
“We’re expecting to work with the Canadian government very quickly to address the situation we face but also to pursue a resolution to it as expeditiously as possible.” – Chris Davison, president of the Canola Council of Canada.
