There's a growing push for Prime Minister Mark Carney and the Liberal government to step up and help support Western Canadian producers that are being impacted by the increased tariffs on canola.
This week, China announced plans to implement a preliminary tariff of 75 per cent on canola seed exports effective Thursday, August 14th. The move is a result of their 2024 anti-dumping investigation that alleges Canada was selling canola seed at what they deemed were unfairly low prices. The latest tariff is over and above the 100 per cent tariff they implemented in March on canola meal and canola oil.
Manitoba Premier Wab Kinew is calling on Ottawa to take immediate action to help canola growers.
"Let's get some dollars out the door to help our industry here in the West, the same way that we've seen other industries supported. And then in the bigger picture, let's work together to have a plan to negotiate an end to these tariffs and the threat that they pose to our agricultural economy."
He noted that on Tuesday, the Chinese tariffs cost about a billion dollars, and now when you add in the canola seed tariffs, the cost for Western Canada is in the hundreds of millions of dollars.
"This is primarily going to be borne by the farmer in the field, and of course, there's going to be the spillover impacts on the rest of our economy as well."
Warren Ellis, Chair of the Manitoba Canola Growers Association, says with the crop just days away from being harvested, China's new tariffs put farmers in a financial bind.
"The maximum amount of money has been spent already by farmers to grow the crop, and on Tuesday morning, we lost our second-largest customer. All the loans that we take out, all the cash flow that we use to finance growing the crop, now paying that back is in jeopardy."
He says it's really critical that we see solutions; we can't be left to drift."
Jill Verwey, president of the Keystone Agricultural Producers, says it adds an additional stress load on producers.
"You know, we're heading into harvest, and market uncertainty is just another stress on our producers at a critical time. Where, you know, we have to repay all of that money that has been invested in the crop. So volatility in markets at this point in time, and that we've seen in the last year, has really put additional stress load on farmers."
Saskatchewan Premier Scott Moe says the federal government cannot sacrifice an industry that generates over $40 billion in economic activity and 200,000 jobs in Western Canada, to protect a fledging electric vehicle industry largely based in the east.
Moe says we need to see immediate action from Prime Minister Carney, starting with financial assistance for canola growers, similar to what he promised the forestry sector last week.
He points out that this is a significant industry comparable in size to the Canadian forestry industry and much larger than the steel, aluminum, and EV industries combined.
"We are engaging with every opportunity that we have. We are engaging at all levels with ministers engaging with their counterparts, not only in the federal government but in provinces across Canada."
Moe added that he has a meeting planned this week with Chinese representatives.
Alberta's Agriculture Minister RJ Sigurdson says the province is calling on Ottawa to act swiftly to support Western Canadian producers and resolve the dispute.
He says these tariffs by China are in response to the federal government’s decision to impose 100 per cent tariffs on Chinese electric vehicles and 25 per cent tariffs on steel and aluminum.
Sigurdson notes Alberta’s farmers, ranchers, and processors did not create this situation, yet they are paying the price.
Kinew says China launched the tariffs at this time of year to cause maximum impact and maximum uncertainty as farmers begin the harvest.