The possibility of Chinese canola tariffs has been hanging over Canadian canola producers for months—and the hammer came down over the weekend.
China will impose 100 per cent tariffs on Canadian canola meal and canola oil, starting on March 20th. Canola seed is not affected by the tariffs but is still the subject of an anti-dumping investigation launched by China in September. In addition to canola oil and meal, China will also have 100 per cent tariffs on peas and 25 per cent for pork and seafood.
China is a key export market for Canadian canola and peas. Two million metric tonnes of canola meal valued at $921-million was sold in 2024, plus an additional $1.5 million of canola oil. In 2024, Canada exported roughly 500,000 metric tonnes of yellow peas valued at over $306-million. The numbers are much larger over the previous five years as China replaced India as our largest pea buyer.
Rick White is the President and CEO of the Canadian Canola Growers Association. He says with this announcement, canola producers are facing an unprecedented situation of trade uncertainty from our two largest customers—China and the United States.
China is imposing these tariffs on canola meal, canola oil, peas and pork in response to Canada’s imposition of tariffs on Chinese electric vehicles, steel and aluminum last fall. White says the impact of federal trade policy is playing out at the farmgate, making it imperative that the Canadian government respond with a plan for financial compensation commensurate with the losses incurred.
Pulse Canada Chair Greg Cherewyk is calling on the federal government to immediately engage with China to find a resolution on these tariffs.
Last Friday, the federal government announced a couple of measures to assist farmers—but both come in the form of loans or advances. The interest-free limit for the Advance Payment Program (or cash advance as it is comonly called) is rising from $100,000 to $250,000. Farm Credit Canada will provide $1-billion in new lending to alleviate financial challenges caused by tariffs. This includes access to an additional credit line of up to $500,000 and new term loans. Current FCC customer have the option to defer principal payments for up to 12 months on existing loans.
Premier Scott Moe responded to a Saskatchewan farmer’s message on X about the current situation.
