China has finally remembered electric vehicle (EV) tariffs of fall 2024 and avenged them with 100% surtax on canola from Canada. This is happening just a few weeks after Canada raised its 2024-25 canola ending stock.
The Ministry of Commerce of China specifically targeted canola oil, oilcake, pea, pork and aquatic good imports, effective March 20, 2025.
This fallout elicited a grim reaction in Canada, worlds apart from industry celebration that had attended the 100% EV tariffs against China on October 1, 2024.
In his initial reaction, the president of the Canola Council of Canada Chris Davison called the duty “prohibitively high.”
He pointed out that rapeseed dispatches to China are worth C$5 billion ($3.48 billion) annually, which indicates an industry-wide impact.
Davison further added that the main losers will be farmers who reap the crop yearly, seed companies and export firms.
Canola Courting Double Trouble
Although the canola sector is not alone surtaxed, it is strategic for it sustains two big tariff-happy importing markets.
Three-quarters of Canada’s annual C$15 billion ($10.44 billion) in canola product exports end up in China and the United States.
Now it is increasingly looking like the crop could have double tariffs from these two largest import destinations.
This could happen if President Trump implements 25% tariffs on Canada’s goods, currently under postponement till April 2, 2025.
Luckily for farmers and other stakeholders, the government has set aside C$1 billion ($696 million) to alleviate the surtax effect.
Pork, too
This billion-dollar kitty could aid agricultural exporters of other goods such as peas and pork with their 100% and 25% tariffs, respectively.
Interestingly, pork tariffs echo those that Canada surcharged on China’s steel and aluminium. But unlike canola, the affected value is minimal at C$514 million ($357.8 million) in annual imports of pork by China (2018 data).
These happenings underline the agitate effect of a bilateral trade war that could have a longterm effect even on canola prices. To learn more on how canola from Canada has been faring before these tariffs, browse the next statistics.
Sino-Canada Canola Trade Statistics
China together with the United States buy 75% of Canada’s outbound canola products. This represents a substantial margin of all rapeseed under production in Canada, for 90% of this output undergoes export. Among the best-moving canola products are rapeseed grain and rapeseed oil. Concerning which, rapeseed oil was Canada’s 18th most prevalent export worldwide in 2023.
What is the biggest canola product that China buys from Canada?
As the world’s biggest exporter of the grain, Canada naturally exports more rapeseed grain than any other canola product to China. In 2023, China bought US$3.02 billion (almost C$5 billion) in rapeseed from Canada, at the 2nd rank worldwide. This represents 32% of canola exports by Canada that year.
How much canola oil does China import from Canada?
China imports US$150 million (C$738.4 million) in rapeseed oil from Canada, as of 2023, the third highest after the U.S. and Mexico.
Does Canada order canola from abroad?
Canada ships in small amounts of canola worth US$239 million (C$343.3 million), as of 2023, half from the United States.