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

China announced the introduction of import tariffs on Canadian goods from March 20, 2025, including a 100% tariff on canola oil, oilcake 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 are intended to 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 government urgently needs to develop a financial compensation plan proportional to the losses caused.

Analysts see Beijing's decision as a signal to Canada and Mexico not to cooperate with the US on trade. Canadian authorities have not yet officially commented on the situation, and China's Ministry of Commerce has called on Canada to correct its mistake and lift the restrictions.