Weeks away from seeding, farmers face uncertainty from Chinese canola tariffs

Farmers on the Canadian Prairies have canola on their minds as they brace for a geopolitical storm.

On Thursday, China is expected to institute 100 per cent tariffs on Canadian canola oil and canola meal, along with 25 per cent tariffs on other goods like seafood and pork.

Saskatchewan has five canola crushing plants and produces more than 50 per cent of the country's canola.

As seeding season inches closer, farmers say they aren't sure if planting canola is worth it this year.

"There's so much at stake. We built a farm based on Canada's commitment to free trade and now that's all up in the air," Margaret Rigetti, a canola farmer near Moose Jaw and the director with the Saskatchewan Oil Seeds Development Commission, told CBC.

"We're weeks away from going to the field. We have hundreds of thousands of dollars of seed and fertilizer on the farm waiting to go into the ground."

WATCH | China hitting Canada with 100% tariff on canola oil and peas:

China hitting Canada with 100% tariff on canola oil and peas

9 days ago

Duration 1:58

The Canadian Canola industry is under attack again from China. New Chinese tariffs are in response to the federal government's decision last October to impose 100 per cent tariffs on Chinese electric vehicles and a 25 per cent levy on its aluminum and steel products.

The Chinese tariffs on canola come in response to 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, 2024.

The move was meant to keep cheap electric cars from China at bay to grow and protect Canada's nascent EV sector. 

Farmers argue that the auto industry shouldn't be more well-protected than the canola industry.

"I want to know why farmers are paying to protect an industry that barely exists," Rigetti said. "I want to know why the automotive industry doesn't have to compete while we do."

The Chinese tariffs are scheduled to kick in just a day after the Saskatchewan budget is set to be introduced in the provincial election.

Saskatchewan Premier Scott Moe addressed farmers' concerns Tuesday at Canada's Farm Show, a trade show in Regina. He urged Canada's new Prime Minister Mark Carney to take action against China.

"He should use this time to reach out to the president of China," Moe said. "This is the most urgent and pressing issue to the Canadian economy and to the Western Canadian economy. There will be jobs that will be lost."

Meanwhile, U.S. President Donald Trump is also threatening sweeping 25 per cent tariffs on almost all Canadian exports, including canola and pork. Those tariffs could come into play as early as next month.