China has announced preliminary anti-dumping duties of 75.8% on Canadian canola imports, effective Thursday, marking a sharp escalation in a year-long trade dispute that began when Ottawa imposed tariffs on Chinese electric vehicle imports last August. The Chinese Ministry of Commerce said Tuesday that the provisional rate comes after an anti-dumping probe launched in September 2024 concluded Canada’s agricultural sector, particularly its canola industry, benefited from significant government subsidies and preferential policies.
The Canadian government rejected the findings, saying in a late Tuesday statement that it does not dump canola and is “deeply disappointed” by China’s decision, while remaining open to dialogue. “Canada is committed to ensuring fair market access for our canola industry and we remain ready to engage in constructive dialogue with Chinese officials to address our respective trade concerns,” said International Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald.
This move puts Canada in trade disputes with both the United States and China. While the U.S. is Canada’s top market for canola meal and oil, China purchases the majority of Canada’s canola seed exports—worth nearly C$5 billion ($3.64 billion) in 2024. Canola Council of Canada President Chris Davison said the duty rate effectively closes the Chinese market to Canadian canola.
“This really came as a surprise and a shock,” said trader Tony Tryhuk of RBC Dominion Securities. A Singapore-based oilseed trader added, “Who will pay a 75% deposit to bring Canadian canola to China? It is like telling Canada that we don’t need your canola, thank you very much.”
China, the world’s largest importer of canola, sources nearly all its supply from Canada. The steep duties, if maintained, would likely halt imports entirely. This follows China’s earlier tariffs on Canadian canola oil and meal in March, as well as Canada’s tariffs on Chinese steel and aluminum.
