Canadian farmers could significantly change canola, wheat and barley plantings after China and US impose tariffs

Canadian farmers are facing challenges due to tariffs imposed by China on Canadian peas, canola oil and meal, and potential tariffs by the US. This could impact canola planting plans and worsen a global canola shortage. In response, China has initiated an anti-dumping investigation and imposed significant tariffs on these products, as well as pork and seafood, following Canadian tariffs on Chinese goods. Canadian farmers are responding by reducing purchases and seeking more government loans. The Canadian government is increasing support for affected farmers, including increasing the compensation rate and payment limit.

Canadian farmers are in a difficult situation, as tariffs on Canadian peas, canola oil and meal imports to China came into effect on March 20, and in two weeks the United States may introduce a number of tariffs on Canadian goods. Uncertainty about the export outlook could change canola planting plans, which will exacerbate the global canola shortage in the new season. In response to tariffs on Chinese electric vehicles and aluminum and steel products introduced by Canada in October 2024, China imposed a 100% tariff on imports of Canadian peas, canola oil and meal worth more than $ 1 billion and a 25% tariff on imports of Canadian pork and seafood worth $ 1.6 billion. At the same time, unprocessed canola seeds will not be subject to tariffs. China, the main buyer of Canadian canola and the second largest importer of Canadian canola meal after the United States, is also conducting an anti-dumping investigation into canola seed supplies from Canada. Canadian authorities said that ...