Canola and the China Tarriff

Municipal Affairs
1 day ago
2 min read

*(Photo Prime Minister of Canada Facebook Page)*

After months of uncertainty for farmers and producers across rural Canada, there may finally be some relief on the horizon.

On Friday, Ottawa announced a new trade agreement with China following a high-level meeting in Beijing between Prime Minister Mark Carney and Chinese President Xi Jinping. The deal is expected to roll back some of the steep tariffs that have weighed heavily on Canadian agriculture and seafood exports—tariffs that were imposed as part of an escalating trade dispute between the two countries.

That dispute began in the summer of 2024, when Canada slapped a 100 per cent tariff on Chinese-made electric vehicles, arguing they were being dumped on global markets. China responded the following year with tariffs of its own—up to 100 per cent on certain Canadian canola products, and a 25 per cent levy on pork and seafood.

Under the agreement announced Friday, Beijing is expected to slash tariffs on Canadian canola seed to 15 per cent by March 1, 2026. In return, Canada will allow nearly 49,000 Chinese electric vehicles into the Canadian market at a tariff of just over six per cent—a number set to grow to roughly 70,000 vehicles within five years.

Ottawa also says tariffs on canola meal, lobster, crab, and peas could be reduced or removed entirely from March 1 through at least the end of the year.

But while the headlines focus on diplomacy and trade numbers, the real question is what this deal means on the ground—for farmers, producers, and rural communities already facing tight margins and an uncertain growing season.

One of the leading voices advocating for canola producers throughout this dispute has been Saskatchewan Association of Rural Municipalities President Bill Huber. We caught up with President Huber to get his reaction to the agreement, and what it could mean for rural producers as they head into the new crop year.

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