Canadian farmers weigh plans as Chinese tariff hits canola price
Chinese Tariffs on Canadian Canola Products Impacting Farmers
As Chinese tariffs on Canadian canola products continue to hamper the cash price of one of the country’s most valuable crops, farming experts say producers have big decisions ahead of them.
Market Analysis
Market analyst Chuck Penner with LeftField Commodity Research said while future prices are down slightly, the cash price farmers receive for their canola, also known as the basis, is much lower. He mentioned that farmers have lost at least $140 million on their canola in the last two weeks due to the drop in prices.
Compared with March, when China imposed a 100 per cent tariff on canola oil and meal, losses amount to $800 million, according to Penner.
He added, “There’s other factors going on in the market as well, but that’s just a quick and dirty look at it.”
Impact on Canadian Canola Industry
The hit to Canada’s canola industry comes more than two weeks after China hit Canadian canola seed with a 75.8 per cent tariff. Beijing’s duty on canola seed was seen as a response to Canada’s 100 per cent tariff on Chinese electric vehicles.
Producers are planning on growing canola next year, but the decision will depend on market forces and their land management practices, known as crop rotations.
Challenges and Solutions
Canola is considered a high source of farm revenue for Canadian producers, but it’s also among the most expensive to grow. Chris Davison with the Canola Council of Canada stated that they are working to support and create conditions for continued productivity and profitability in canola farming.
China is Canada’s second-largest importer of canola products, behind only the United States. This year’s canola crop is shaping up to be more bountiful than last, which could create additional pressures should China’s tariffs persist.
Political Discussions
Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have urged Ottawa to drop its 100 per cent electric vehicle tariff on Beijing. Davison mentioned that resolving political issues should be part of discussions between China and Canada to find a solution.
Conclusion
The canola industry contributed $43 billion to Canada’s economy last year and employs roughly 200,000 people. The canola seed tariff came into force nearly a year after Beijing launched an anti-dumping probe into the crop.
Penner highlighted the issue of farmers and industry being at the mercy of politics, with little they can do about it. The situation underscores the impact of political decisions on the agricultural sector.
This report by The Canadian Press was first published on September 1, 2025 by Jeremy Simes.
