China’s Ministry of Commerce has announced steep tariffs on several major Canadian agricultural exports, responding to Canada’s levies on Chinese electric vehicles (EVs), steel, and aluminum that were implemented in the fall of 2024.
Canola oil, canola meal, and peas from Canada will face a 100 per cent tariff as of March 20, 2025, according to a Chinese government notice dated March 8, 2025.
This levy will be prohibitive for the export of Canadian canola oil and meal to China, according to the Canola Council of Canada.
“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, Canola Council of Canada president and CEO, in a March 8 statement. “We urge the federal government to immediately engage with China, with a view to resolving this issue.”
A 25 per cent tariff will also be applied to Canadian pork, as well as lobster and other seafood products.
Canola seed — the subject of an anti-dumping investigation that China launched in September — is notably not affected by the tariffs announced on March 8.
In 2024, Canadian exports of canola meal to China were worth approximately C$920 million (around two million metric tonnes), while exports of canola oil were valued at $21 million (around 15 thousand metric tonnes).
Canada exported roughly 500 thousand metric tonnes of yellow peas to China in 2024, valued at around $306 million. The five-year average for yellow pea exports is over 1.5 million metric tonnes, valued at more than $740M annually.
Total fish and seafood exports to China in 2024 were worth $1.3 billion. ork exports to China last year totalled $469 million.
As part of the announcement, the Chinese government says Canada’s duties on Chinese EVs, steel, and aluminum “seriously violate the rules of the World Trade Organization, are typical protectionist practices, constitute discriminatory measures against China, and seriously damage China’s legitimate rights and interests.”
“Canada does not accept the premise of China’s investigation, nor its findings. We are deeply disappointed with China’s announced measures,” say Canada’s Trade Minister Mary Ng, Agriculture Minister Lawrence MacAulay, and Fisheries Minister Diane Lebouthillier, in a joint statement.
“We are steadfast in our commitment to defend Canadian workers and we will stand shoulder-to-shoulder in our support for Canada’s hard-working farmers and fishers in the agricultural and fishing sectors, who will be impacted by the measures that China regrettably announced today,” the ministers say.
The Chinese tariffs were announced just days after the U.S. implemented a 25 per cent tariff on Canadian exports. The Trump administration has subsequently conceded a one month reprieve for products that are exported under terms of the CUSMA/USMCA agreement.
“With this announcement Canadian canola farmers are facing an unprecedented situation of trade uncertainty from our two largest export markets only weeks before planting begins,” says Rick White, Canadian Canola Growers Association president and CEO. “The impact of the federal government’s trade policy decisions is now playing out at the farmgate, making it imperative that government respond with a plan for financial compensation commensurate with the losses incurred.”
Pulse Canada president Greg Cherewyk says China’s tariffs should be viewed as “an invitation to negotiate, not a retaliation nor the start of the trade war.”
The Canadian Agri-Food Trade Alliance (CAFTA), which represents export-dependent commodities, including canola, peas, and pork, says a swift resolution is needed.
“CAFTA and its members raised concerns about possible retaliatory action by China with federal officials ahead of the government imposing tariffs on Chinese electric vehicles, steel and aluminum in Fall 2024,” notes CAFTA executive director Michael Harvey. “Given current trade and geopolitical uncertainty for Canada’s agri-food exports, it is imperative that the Government of Canada engage with China as quickly as possible to find a resolution to this issue.”
Editor’s note: This story has been updated with quotes and export statistics. More to come.
Related:
China shares more details as it begins anti-dumping investigation into Canadian canola
MacAulay addressed canola trade concerns, meat exports while in China
