China’s Ministry of Commerce has concluded its anti-discrimination investigation against Canada, launched in September 2024, in response to Canadian tariffs on Chinese electric vehicles, steel, and aluminum. The result? A heavy blow to Canadian canola.
On March 20, 2025, China’s State Council Tariff Commission will impose a 100% tariff on Canadian canola oil and canola meal — along with several other agricultural commodities. The move effectively shuts the door to one of Canada’s most valuable export markets.
The tariffs are separate from China’s ongoing anti-dumping investigation into Canadian canola seed imports, but the impact is immediate and staggering. In 2024, China imported $918 million worth of Canadian canola meal (2 million metric tonnes) and $20.6 million worth of canola oil (15,351 metric tonnes). Combined, China’s appetite for Canadian canola was worth nearly $5 billion last year.
“New tariffs from China on Canadian canola oil and meal will have a devastating impact on canola farmers and the broader value chain at a time of increased trade and geopolitical uncertainty,” says Chris Davison, President & CEO of the Canola Council of Canada (CCC). “We urge the federal government to immediately engage with China to resolve this issue.”
The timing couldn’t be worse. Canadian canola farmers, who are just weeks away from planting, now face significant financial uncertainty.
“The impact of the federal government’s trade policy decisions is now playing out at the farmgate,” says Rick White, President & CEO of the Canadian Canola Growers Association (CCGA). “It’s critical that the government respond with a plan for financial compensation that matches the scale of the losses incurred.”
The canola industry is a pillar of Canada’s economy, supporting 40,000 farmers and generating $43.7 billion annually. China is Canada’s second-largest market for canola, and the new tariffs could cripple a crucial revenue stream.
For now, both the CCC and CCGA say they’ll continue working with the Canadian government and other industry partners to find a path forward — but the damage has already begun.
