China to impose 75.8% tariff on Canadian canola

China plans to impose a 75.8% tariff on the crop from August 14 after an anti-dumping investigation is completed, Bloomberg reported, citing a statement from China’s Ministry of Commerce.

China’s investigation found that Canada’s canola sector received significant government subsidies and that supply and demand were skewed. Beijing will continue its investigation and make a final decision based on its findings soon.

Earlier this year, Beijing imposed a 100% tariff on canola oil and meal from the North American country, where the crop is known as canola, in retaliation for Canadian duties on electric vehicles, steel and aluminum made in China. The latest moves leave Ottawa fighting a two-front trade war over the crop after President Donald Trump imposed similar tariffs on canola.

China previously suspended canola shipments from Canada in 2019. This time, it comes amid Beijing’s trade dispute with the United States, another major supplier of the oilseed. The country had not yet secured any U.S. soybeans for the upcoming marketing year, according to data as of late July, and Trump called on China to increase purchases the day before.

The move could restrict trade flows and threaten supplies of canola meal, a key animal feed ingredient considered essential to China’s vast livestock sector. Beijing is already making efforts to diversify supplies, courting producers from Australia to India.

India imported 6.39 million tonnes of canola last year, almost all from Canada, according to Chinese customs data. The trade was worth more than $3 billion.

For Canadian canola, demand in other markets such as Japan, Europe and Mexico could cushion the price shock somewhat. Still, discounts are likely, and the country will rely more on domestic processing.

However, total Canadian canola exports for 2024/25 were 9.49 million tonnes, up 39.2% from the previous year. Canadian canola crush in 2024/25 also reached a new high of 11.3 million tonnes, up 0.3 million tonnes from the previous season.

Tags: China, rapeseed, duties