The Canadian canola industry has been dealt a major blow after China’s Ministry of Commerce (MOFCOM) announced a 75.8% duty on all Canadian canola seed shipments, effective today. The tariff, imposed as part of an ongoing anti-dumping investigation, will be collected in the form of a deposit and comes at a critical time for farmers preparing for harvest.
The Canola Council of Canada (CCC) and Canadian Canola Growers Association (CCGA) called the move “deeply disappointing,” warning it could shut Canadian producers out of their second-largest market, which was worth $4.9 billion in 2024.
“With this preliminary determination of dumping for canola seed together with the existing 100% anti-discrimination tariffs on canola meal and oil, the Chinese market is effectively closed to the Canadian canola industry,” said Chris Davison, president and CEO of the Canola Council of Canada, in a statement.
Blow to Farmers Weeks Before Harvest
The timing of the decision appears strategic, hitting just as Canadian farmers begin planning to sell their 2025 crop.
“This tariff will have an immediate and substantive impact on farmers’ marketing opportunities for the 2025 canola crop,” said Rick White, president & CEO of CCGA. “Canadian farmers are globally competitive and if a solution is not found swiftly, the impact will be quickly felt on our farms and in our rural communities.”
The industry has consistently maintained that its trade with China supports rules-based trade, fair market access, and competitiveness. Canola exports to China have long been considered a vital demand driver for the sector — one that’s now in jeopardy.
An Industry on Edge
The CCC and CCGA warn the loss of this market will create “significant additional uncertainty and volatility in the global marketplace,” potentially rippling across the entire canola value chain. With $43.7 billion in annual economic impact and over 200,000 Canadian jobs tied to the crop, the stakes are high.
Both organizations are calling for immediate federal government support as they push for a resolution.
“China is a highly valued market and the Canadian canola industry has and will continue to work hard to meet Chinese customer and food security needs,” the CCC said.
For now, the industry is bracing for the fallout — and a future where one of its biggest markets could be off-limits.
