Manitoba's canola industry, farmers call for federal action on looming tariffs from China
Manitoba farmer says canola prices will be 'in the red' as 100 per cent tariffs set to take effect on Thursday
Impending Chinese retaliatory tariffs on some canola products has led Manitoba farmers and industry members to critique the Canadian government for not doing enough to protect farmers from financial harm and make amends with China.
Jason Johnston, who operates a grain farm in Darlingford, Man., about 117 kilometres southwest of Winnipeg, said provincial and federal politicians haven't acknowledged the impacts farmers are facing since China's Commerce Ministry announced it will impose 100 per cent tariffs on canola oil and oil meal starting Thursday.
"In the week since this announcement has been made, canola has dropped $2 a bushel, so on my farm that would mean about an $80,000 loss every year," Johnston said, adding that he farms approximately 1,000 acres of canola on crop rotation each year.
"We are definitely in the red on canola at these prices."
The looming tariffs are in retaliation for Canada's 100 per cent tariffs on Chinese-made electric vehicles and a 25 per cent levy on Chinese aluminum and steel products imposed on Oct. 1. Canada followed the lead of the United States and the European Union who initially applied import levies on Chinese-made electric vehicles.
Johnston wonders if canola farmers will be compensated for their losses and urges Canadian politicians — who have been "completely silent" on the issue — to lift the tariffs on Chinese-made electric vehicles in the hopes China will revoke its tariff threats.
"We are price takers, we have no say in this at all … and Canadian farmers need to know what's going to happen," he said during an interview on CBC's Information Radio on Monday.
Canola is Canada's second largest acreage crop with more than 21 million acres produced annually, a federal news release said. Canola meal exports to China made up $920.9 million of Canada's economy in 2024 while canola oil exports to China made up about $21 million.
Although farmers are seeking other options for crops to grow on their farms, flooding these alternative agriculture markets poses a risk as well, he said.
The federal government has implemented some tariff relief measures for Canadian businesses and workers, including $1 billion in new financing through Farm Credit Canada to reduce financial barriers for the Canadian agriculture and food industry — but Johnston says these are loans and not financial aid.
China is Canada's second-largest trading partner, following the U.S., which has imposed 25 per cent tariffs on Canada, Mexico and China. U.S. President Trump has paused some tariffs imposed on Canadian goods, including canola products, until April 2.
Johnston questions why Prime Minister Mark Carney, who was sworn in on Friday after the previous leader Justin Trudeau stepped down, isn't ramping up the country's trade relations with China if the U.S. is no longer a favourable trade partner.
The federal government's former International Trade Minister Mary Ng and Lawrence MacAulay, the former federal minister for agriculture, said Canada "remains open to engaging in constructive dialogue with Chinese officials" to address their trade concerns, according to a news release on March 8.
Johnston criticized how Carney promised to support workers in the Canadian steel and aluminum industry on Wednesday following the impacts of U.S. tariffs, but has yet to commit to supporting farmers affected by tariffs on canola. Carney is also doubling down on his partnerships with France and the U.K. as Trump continues to attack the future of Canada's sovereignty and economy.
LISTEN | Manitoba farmer calls on federal government to take action on retaliatory tariffs:
Winnipeg South Centre MP Ben Carr said China's tariffs on canola are "unwarranted and unjustified." Government officials are working to ensure support is in place for Manitoba farmers, he said in an emailed statement on Monday.
Andre Harpe, chairman of the Canadian Canola Growers Association, said he's spoken to Kody Blois, the new federal cabinet minister for agriculture and agri-food, who seems to be listening to the industry's concerns.
"We are starting to see recognition that this is a serious issue," said Harpe, who's based in Grande Prairie, Alta.
Possible tariffs from the U.S. and China will simultaneously leave Canada with "no room to breathe" which would be "absolutely devastating," he said. The industry has already seen some grain companies holding back from buying canola, Harpe said.
"The federal government has to get at least one of these tariffs, if not both of these tariffs, removed."
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With files from Chidi Ekuma and Zubina Ahmed