China has announced a preliminary 75.8% tariff on Canadian canola, following an anti-dumping investigation launched last year in response to Canada’s 100% tariff on Chinese electric vehicles (EVs). The Ministry of Commerce claims Canadian canola has been sold at unfairly low prices, hurting domestic producers.
The Canola Council of Canada (CCC) explained that anti-dumping cases occur when imports are suspected of being priced below their home-market value. The CCC insists Canada’s canola trade with China follows international rules, but has not yet commented on the latest tariff decision.
Trade Dispute Background
The tariff is the latest escalation in a trade spat that began when Canada imposed a 100% tariff on Chinese EVs in 2024, mirroring a similar U.S. move. Canadian officials argued the action was needed to protect domestic vehicle sector investments from low-cost, state-subsidized Chinese EVs.
China responded in March 2025 with 100% tariffs on Canadian canola oil, canola meal, and peas. The two countries met recently for what China called “in-depth and frank” talks on trade issues, but no resolution emerged.
Environmental groups in Canada have urged the government to reconsider the EV tariff amid falling EV sales, which followed the cancellation of a federal rebate program. They argue that allowing limited imports of lower-cost Chinese EVs could boost competition, innovation, and affordability.
The government has pledged to reintroduce an EV rebate but has not provided a timeline.
What The Author Thinks
This latest tariff is less about protecting Chinese farmers and more about sending a political message. Both governments are locked in a retaliatory cycle that risks long-term harm to industries unrelated to the original dispute. Unless agricultural products are shielded from political crossfire, Canadian farmers could face lasting market instability.
Featured image credit: PickPik
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