Question Period Note: China: Tariff’s on Canadian Canola Oil

On March 20, 2025, China imposed 100% tariffs on Canadian canola oil and meal in response to Canada’s surtaxes on EVs, steel and aluminum.

• Canada is pursuing a dual track approach to resolving the tariff issue with China.
• We are advancing our WTO dispute (DS636) to maintain pressure while simultaneously looking to engage with my Chinese counterpart at the earliest opportunity to signal Canada’s openness to finding a way forward.

On March 20, 2025, China imposed 100% tariffs on Canadian canola oil and meal in response to Canada’s surtaxes on EVs, steel and aluminum. China is the largest market for Canadian canola exports with canola seed, oil and meal valued at $4.9 billion (CAD) in 2024, with Canola oil accounting for $20.6 billion. Canola farmers can mitigate the tariff’s effects by selling canola seed for crushing in China or in third countries (e.g. UAE). Canada initiated a WTO dispute challenging China’s tariff on March 20, 2025 (DS636) and will be requesting the establishment of a dispute settlement panel at the May 23, 2025, WTO dispute settlement body meeting. CCC traveled to China in Dec. 2024 to hear from local stakeholders and is completing an internal impact study of China tariffs on the sector which they will share with government officials.

None