Prairie canola producers brace for ‘devastating’ 100 per cent tariffs from China

Canola farmers across Canada are facing tough times ahead as China plans to impose significant tariffs on their industry in retaliation to Canadian tariffs on the country’s electric vehicle exports. With planting season just around the corner, farmers are bracing themselves for the impact of these tariffs.

The Chinese government is set to impose a 100% levy on Canadian canola oil and meal, along with a 25% duty on seafood and pork. This news has sent shockwaves through the Canadian agriculture sector, with many farmers like Clinton Monchuck from Lanigan, Saskatchewan, expressing deep concerns about the future of their businesses.

These tariffs are in response to Canada’s own levies on Chinese-made EVs and taxes on aluminum and steel products. Former Prime Minister Justin Trudeau stated that China was gaining an unfair advantage that was hurting Canada’s auto industry.

While the exact effects on consumers are still uncertain, industry experts believe that the price of canola oil may not see a significant increase in Canada. The federal government has denounced China’s tariffs as unjustified, but has yet to announce any concrete plans to support canola farmers during these challenging times.

Monchuck, a fourth-generation canola farmer, fears for the survival of his family’s nearly 120-year-old farm. He anticipates a loss of $100,000 this year alone if the tariffs remain in place. The situation is further compounded by potential trade actions from the U.S., which is planning to implement 25% tariffs on all imports from Canada in April.

For many canola farmers, these tariffs bring back painful memories of 2019 when similar levies were imposed following the detention of Huawei executive Meng Wanzhou. Farmers feel that the federal government’s actions to protect the auto sector have directly led to the current situation.

In response to the tariffs, leaders from the Prairie provinces have called on Ottawa to provide support for farmers. Alberta, Saskatchewan, and Manitoba heavily rely on China for canola exports, making the impact of these tariffs potentially devastating for the region.

The Alberta Canola Growers Association has urged the federal government to cover losses resulting from the tariffs. The current situation has left many farmers without bids from buyers, leading to a sharp decline in canola prices since the announcement of the tariffs.

Alberta Agriculture Minister RJ Sigurdson is hopeful that the federal government can engage in dialogue with China to resolve the trade war. Meanwhile, the United Conservative Party has allocated $4 billion to manage the response to tariffs, indicating the seriousness of the situation.

Premier Danielle Smith of Alberta reassured rural leaders that the province’s canola seed exports are exempt from China’s tariffs, mitigating some of the potential impact. Saskatchewan, with a modest surplus in its budget, did not allocate funds to address the tariff issue, while Manitoba is expected to address the issue in its upcoming budget.

The uncertainty surrounding the future of Canada’s canola industry highlights the challenges faced by farmers in an increasingly complex global trade environment. As they navigate these turbulent times, farmers are looking to the government for support and solutions to ensure the long-term viability of their businesses.