The Canadian Canola Growers Association is sounding the alarm over the fallout of China’s tariffs on Canadian canola. The 100 per cent tariff on canola meal and canola oil (but not seed) was announced late last week and is set to take effect March 20, 2025.
Rick White, president and CEO of CCGA, says that it’s clear that the tariffs are in direct retaliation to Canada imposing tariffs on EVs and steel and aluminum from China.
“This is very clean, clear, and direct response from China regarding the Canadian initiation [of these tariffs],” White says. Canada imposed the tariffs to align with the United States.
The Canadian canola industry is also waiting for the findings of China’s anti-dumping investigation into canola seed.
This initial tariff announcement does not pertain to canola seed, but tariffs could be announced on seed once that investigation concludes, leaving the industry collectively holding its breath.
White says that now is the time for Canada to negotiate with China and put that EV tariff on the table. “[We need to] negotiate this away so we don’t have to fight a trade war with two superpowers at the same time, which is what this is lining up to be, and we can’t win that fight…. Canada needs to stand up and undo what was done to try to get China to back down.”
Additionally, CCGA is calling on the federal government to put together a plan for compensating farmers for losses stemming from this trade disruption.
“Farmers should not be expected to borrow their way through these problems that are looming with China nor with the U.S.,” White says. “They’re going to need a cash injection. They’re going to need support with cash, not increasing their debt. And it doesn’t matter if it’s interest free or low interest or more availability, it’s all debt that needs to be paid back at the end of the day.”
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