China imposes high tariffs on Canadian goods, especially on canola oil and meal

China has imposed import tariffs on Canadian goods effective March 20, 2025, in retaliation to Canada's tariffs on Chinese products. The tariffs include a 100% rate on canola oil, meal, and peas, and 25% on pork and seafood. This will significantly impact Canadian exporters, as in 2024, Canada exported 2 million tons of rapeseed meal and 15.3 thousand tons of rapeseed oil to China. The Canola Council of Canada recommends that the Canadian government create a financial compensation plan for the losses incurred. The tariffs are also seen as a warning to Canada and Mexico not to cooperate with the US in trade.

China announced the introduction of import tariffs on Canadian goods from March 20, 2025, including a 100% tariff on canola oil, meal and peas and a 25% tariff on pork and seafood, which will be a response to Canada's introduction of import tariffs on Chinese electric vehicles, steel and aluminum in August 2024. The Customs Tariff Committee of the State Council of China explained that the new restrictions should balance the trade balance and protect the country's domestic market. Such a move by China will hit Canadian exporters hard, because in 2024 alone, Canada shipped 2 million tons of rapeseed meal worth $918 million and 15.3 thousand tons of rapeseed oil worth $20.6 million to China. May canola futures in Winnipeg have already fallen 6% to 605 CAD/t or 421 $/t (-11% for the month). Experts from the Canola Council of Canada (CCC) said that the introduction of tariffs by China will make it economically impossible for it to purchase canola oil and meal from Canada, so the ...