China’s anti-dumping duty on Canadian canola is ‘timed for impact’ and will have a major impact on farmers’ 2025-26 marketing opportunities, industry representatives said Tuesday.
In a ruling announced early Tuesday, China’s Ministry of Commerce (MOFCOM) announced the imposition of a 75.8% duty, collected in the form of a deposit, on all Canadian canola seed shipments as of Aug. 14, 2025. The duty will remain in place pending a final decision in September.
The ruling by MOFCOM is timed for impact as farmers who planted canola in 2025 are preparing for harvest in a few weeks time, said a statement released Tuesday afternoon by the Canola Council of Canada (CCC).
“This tariff will have an immediate and substantive impact on farmers’ marketing opportunities for the 2025 canola crop,” said Rick White, President and CEO of the Canadian Canola Growers Association (CCGA). “Canadian farmers are globally competitive and if a solution is not found swiftly, the impact will be quickly felt on our farms and in our rural communities.”
Canola futures closed sharply lower today, with the November contract down $30.50 at $650.30.
China is Canada’s second-largest market for canola and related products, with exports valued at $4.9 billion in 2024. If upheld, the preliminary duty will make Canadian canola commercially unviable in China, which sources nearly all of its imports from Canada.
The dispute is the latest flare-up in Canada–China trade relations, which have been strained since Canada imposed tariffs on Chinese EVs, steel and aluminum in August 2024. In March, China slapped 100% tariffs on imports of Canadian canola meal and oil.
MOFCOM’s preliminary anti-dumping determination allows for adjustments before the investigation concludes next month, although the decision could be extended by six months. A final ruling could confirm, alter, or remove the duty rate, according to a Reuters report.
In the absence of Canadian supplies, China could look to Australia for canola. Australia just recently exported a limited number of test cargoes to China, after being frozen out of the Chinese market for years over Chinese accusations of contamination.
Since the beginning of China’s anti-dumping investigation in September 2024, the Canadian canola industry has been consistent in its position that Canada’s canola trade with China is aligned with and supports rules-based trade, fair market access and competitiveness of Canadian canola in the Chinese market, today’s statement from the canola council said. China is a highly valued market and the Canadian canola industry has and will continue to work hard to meet Chinese customer and food security needs, it added.
The canola sector is a cornerstone of Canada’s agri-food economy, generating $43.7 billion annually, supporting over 200,000 jobs, and contributing more than $16 billion in wages. The loss of Chinese demand removes a critical “demand signal” that shapes global pricing and marketing strategies. Industry leaders warn the absence of this market will inject volatility and uncertainty into the global oilseed trade.
The CCC and CCGA are calling on the federal government to intervene immediately to help restore access.
