Canadian farmers face two-front trade war as China duties take effect

Canadian farmers are preparing for a trade war with both China and the US, as China has imposed tariffs on Canadian agricultural products such as canola oil, canola meal, peas, aquatic products, and pork, effective March 20. This comes in response to Canada's own tariffs on Chinese goods. The US, meanwhile, has already imposed tariffs on steel and aluminum imports from Canada, and threatens to add tariffs on Canadian dairy and lumber. The situation has led to reduced purchases of new equipment by farmers and a surge in loan applications from the Canadian Canola Growers Association.

Canadian farmers are facing a two-front trade war, with China’s tariffs on Canadian canola oil, canola meal and peas taking effect on Thursday and US tariffs expected on additional Canadian products within two weeks. The double whammy from two major trading partners makes for a grim mood going into spring planting. “This is a terrible time,” said Calgary area farmer Tara Sawyer of the Chinese tariffs. “The seed has already been bought. The inputs have already been bought. We have to seed it. We have no choice but to move forward,” said Sawyer, who grows barley, wheat and canola. China announced on March 8 that tariffs on over $2.6 billion worth of Canadian agricultural and food products would kick in on March 20, retaliating against levies Ottawa introduced in October. The levies match the 100% and 25% import duties Canada slapped on China-made electric vehicles and steel and aluminum products just over four months ago. China said it would apply a 100% tariff to just over $1 ...