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Saskatchewan farmers are bracing for a major hit after China announced plans to impose a nearly 76 percent tariff on Canadian canola starting August 14, effectively shutting the door on one of the crop’s biggest markets.
Dale Leftwich, policy manager with SaskOilSeeds, said the duty is steep.
“It’s so large that it’s hard to see how any canola would be going into China … one of the biggest markets that we have has been effectively shut down,” Leftwich said.
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He warned the timing could not be worse, with many producers already dealing with drought, high input costs and smaller-than-ever yields in parts of the province. Losing China as a buyer, he added, would force some farmers to store their crop longer, creating extra cost and risk, including spoilage and limiting storage space.
Leftwich also noted the tariff’s potential scale, saying an initial $40 per-tonne price drop multiplied across roughly 10 million tonnes of canola could add up to “an awfully big number in a hurry.”
Federal Minister of Emergency Management and Community Resilience, Eleanor Olszewski, said the government disagreed with the tariff and is working on a response while visiting Saskatoon on Tuesday.
“We’re very disappointed to hear about China’s tariffs. Obviously, we disagree with those tariffs … the federal government will make sure we stand up for workers in that sector,” Olszewski said.
She told reporters the message to farmers is clear: “Ottawa has their back, just as it did in previous trade disputes over steel and aluminum.”
She added that nothing was off the table when it came to protecting producers and the broader economy tied to the crop.
The federal minister said officials were still formulating their next step, but stressed that trade negotiators and other specialists would be tasked with finding solutions.
China has become one of Canada’s largest canola customers in the past decade, buying both seed and processed products. The country has restricted canola imports before, but Leftwich said this nearly 76 per cent tariff is broader, covering seed as well as oil and meal, leaving few ways for Canadian exporters to compete.
Farm groups warned the move would have a ripple effect beyond the farm gate, hitting processors, suppliers and small towns that rely on agricultural spending.
“This is devastating to the farmer, devastating to the person they’re buying supplies from and devastating to all of the small towns that rely on business from farmers,” Leftwich said.
The nearly 76 per cent tariff is scheduled to take effect on August 14.
APAS warns of huge economic hit
Bill Prybylski, president of Agricultural Producers Association of Saskatchewan (APAS), said the move was not unexpected, but concerning.
“Most producers were expecting that at some point China would initiate some tariffs on canola, but obviously (we’re) frustrated … we know that it’s going to hurt the price of canola, but we just don’t know how much of an impact it’s going to have,” Prybylski said.
He noted the size of the market at stake. In 2024, China purchased around $5 billion worth of canola and canola products from Canada, with Saskatchewan producing about 55 per cent of the national crop.
Prybylski said APAS will be pressing Ottawa for details on its plan and assurances that farmers will be protected.
Fillmore-area producer Jake Laguee says the tariff is a major concern, especially with canola being one of his farm’s most important crops.
“I was really disappointed to see this tariff … a lot of concerns about not just the profitability this year, but the profitability in the future,” Leguee said.
He said it’s too early to know the exact financial hit or whether China’s decision could be reversed in September, but he expects there will be an impact. For now, Laguee is focusing on getting his crop harvested and waiting to see how the market reacts.
Wheat Growers blast Ottawa’s trade approach
In a statement Tuesday, the Western Canadian Wheat Growers Association said Ottawa’s trade missteps have left Western Canada “in the crosshairs” once again.
President Gunter Jochum called the timing a “complete blindside” in the middle of harvest, warning the measure threatens up to $2.35 billion in industry loses.
“The government can’t keep pitting Eastern manufacturing and ill conceived EV interests against Western agriculture and expect us to just absorb the hit,” Jochum said.
The Wheat Growers are calling for immediate high-level engagement with Beijing, the appointment of a dedicated agricultural trade envoy, and a renewed push to diversify exports markets.
Canola exports are supporting tens of thousands of jobs in rural communities, Jochum said, and the tariff will ripple far beyond farms affecting rural businesses, jobs and Canada’s reputation as a reliable supplier.
“Our combines are rolling, but our confidence in Ottawa’s ability to protect Western Canada in global trade is running on empty,” Jochum said. “It’s time for the federal government to get serious, get in the room and get this fixed.”
— with files from 980 CJME’s Lisa Schick and 650 CKOM’s Marija Robinson
