China’s imposition of new tariffs on Canadian canola marks a dramatic escalation in an ongoing global trade dispute sparked by the US. Under the measures that took effect Thursday, the Chinese government is applying 100% tariffs on Canadian canola meal and oil, 25% tariffs on seafood and pork, and additional levies on peas.

“This will close crushing plants, I can’t be more clear,” said Saskatchewan Premier Scott Moe.

Saskatchewan is home to five major canola-crushing facilities that transform seed into oil and meal. The premier’s fears are shared by many in the industry, including the Agricultural Producers Association of Saskatchewan, with its president, Bill Prybylski, highlighting that said farmers are finding themselves short on options.

“Tariffs are applying to everything, so if you’re going to switch from one crop, where do you go from there?” he said.

The move follows Canada’s own tariffs on China’s electric vehicles, aluminum, and steel. China’s Ministry of Commerce has tied the decision to an anti-dumping investigation that began last September, accusing Canada of selling underpriced canola products.

Canada’s federal government categorically denies these allegations.

Compounding the situation is the possibility of 25% tariffs from the US starting April 2, linked to the ongoing push by the Trump administration to overhaul trade relationships. The US has paused some tariffs and lowered others, but steel and aluminum already face 25% levies. President Donald Trump has promised additional “reciprocal” tariffs, though it remains unclear exactly how these would affect Canadian canola.

Meanwhile, the Canola Council of Canada is urging the federal government to intervene directly with Beijing, pleading to have “a view to resolving this issue.”

Canada’s newly appointed Agriculture Minister, Kody Blois, has also signaled that business risk management programs might be used to support producers, though no firm assistance plan has yet emerged.

China has previously restricted Canadian canola only to remove those limits later. In 2019, it revoked export licenses for two Canadian companies following the arrest of Huawei Technologies Co. executive Meng Wanzhou. Once Meng returned to China, the export licenses were reinstated.

Information for this briefing was found via Saskatoon Star Phoenix and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.