China has imposed a 75.8 percent tariff on Canadian canola products, accusing Ottawa of “dumping” underpriced canola seed into the Chinese market to harm domestic farmers. The Chinese Ministry of Commerce announced the measure Tuesday, with implementation beginning Thursday. Beijing’s move is widely viewed as retaliation for Canada’s 100 percent tariff on Chinese electric vehicles (EVs) last year under then–Prime Minister Justin Trudeau.
Chinese state media explicitly tied the new canola tariff to Canada’s trade restrictions on Chinese EVs and steel, accusing Ottawa of violating World Trade Organization rules. Beijing frequently claims adherence to WTO principles while exploiting its “developing country” designation despite being the world’s second-largest economy.
The Ministry of Commerce accused Canada of heavily subsidizing its agricultural sector, creating oversupply and harming Chinese farmers. The investigation into alleged dumping is still ongoing and could result in the tariffs being rescinded in December or extended another six months.
Mark Carney, who replaced Trudeau in April after winning a special election, has not addressed the tariff directly. Carney campaigned on preventing U.S. tariffs but has faced growing trade tensions since taking office. In early August, President Donald Trump announced a 35 percent tariff on Canadian goods outside the USMCA agreement.
Industry leaders say the Chinese action could devastate Canadian farmers. Chris Davison, president of the Canola Council of Canada, said the tariff “effectively closed” the Chinese market to Canadian canola, calling the situation a “political issue that requires a political solution.”
Conservative leader Pierre Poilievre blasted Carney for failing to protect Canadian industries, saying, “Prime Minister Carney is losing and Canada is paying the price.” The left-leaning Globe and Mail also criticized Carney, suggesting his government prioritizes Liberal strongholds over rural, agriculture-based regions.
