China adds ‘additional pressure’ with new tariffs on Canadian canola

China escalated trade disputes with Canada on Tuesday by announcing a preliminary anti-dumping duty on Canadian canola imports of more than 75 per cent.

China on Tuesday announced preliminary anti-dumping duties on Canadian canola imports, a fresh escalation in the year-long trade dispute that began with Ottawa’s imposition of tariffs on Chinese electric vehicle imports last August.

The provisional rate will be set at 75.8 per cent, effective from Thursday, the Ministry of Commerce said in a statement.

ICE November canola futures fell four per cent to a three-month low after the announcement.

China, the world’s largest importer of canola – also known as rapeseed – sources nearly all of its supplies of the product from Canada. The steep duties would likely all but end imports if they are maintained.

“This is huge. Who will pay a 75 per cent deposit to bring Canadian canola to China? It is like telling Canada that we don’t need your canola, thank you very much,” said one Singapore-based oilseed trader.

China’s Ministry of Commerce said on Tuesday an anti-dumping probe launched in September 2024 had found Canada’s agricultural sector and particularly the canola industry had benefited from “substantial” government subsidies and preferential policies.

China has until September, when the investigation formally ends, to make a final decision on the duties, though it has the option of extending that deadline by six months. A final ruling could result in a different rate, or overturn Tuesday’s decision.

The decision marks a shift from the conciliatory tone struck in June when China’s Premier Li Qiang said there were no deep-seated conflicts of interest between the countries during a phone call with Canadian Prime Minister Mark Carney.