China Hits Canadian Canola with 75.8% Tariff — What It Means for Farmers • Over Here Toronto

Canadian farmers—especially out west—are feeling the heat after China announced a whopping 75.8% tariff on Canadian canola seed. The move kicks in on August 14 and has folks in Alberta, Saskatchewan, and Manitoba bracing for a financial hit right as harvest season begins.

Canadian Canola Tariff — *Photo by Alexander Quon/CBC: A field of blooming canola plants near Belle Plaine, Sask., on July 16, 2025.*

John Guelly, a canola grower near Westlock, Alberta, summed it up: “Here we go again. If it’s not one thing, it’s another with China.”

Guelly says trading with China is like a revolving door—just when things start looking up, new tariffs hit. He estimates Canada’s canola industry brings in about $12 billion each year and makes up 15% of all farm income.

Why Is China Doing This?

China says the new tariffs are to stop “dumping”—when foreign products are sold at unfairly low prices, undercutting local farmers. But many believe it’s a response to Canada’s own 100% tariff on Chinese electric vehicles (EVs), which Ottawa put in place last fall.

It’s a back-and-forth trade war, and canola farmers are caught in the middle.

What It Means for Farmers

Ryan Hofford, who farms near Swan River, Manitoba, says the price for his canola dropped almost instantly—by about $50 per acre. For him, that’s a $30,000 loss.

“This is profit we’re talking about,” Hofford said. “Fertilizer’s paid, seed’s paid, everything’s paid. That $50 is what we were counting on to make ends meet.”

Premier Scott Moe of Saskatchewan isn’t staying quiet. He called the move “devastating” and says it threatens an industry worth up to $45 billion a year and supports over 200,000 jobs.

More Than Just Canola

The tariff drama doesn’t end there. China is also investigating Canadian pea starch, which is used in everything from food to paper. Earlier this year, they added big levies on Canadian seafood and pork too.

Moe says this trade war is hurting Western Canada more than anyone else, while Eastern Canada gets the benefits of EV protection.

Can We Find New Buyers?

Experts say replacing China as a canola buyer won’t be easy. China was Canada’s biggest canola seed customer in 2024, buying nearly $5 billion worth.

Australia—another big canola player—has been shut out of China since 2020. So unless global demand suddenly jumps, the options are limited.

Some farmers are hoping Canada can crush more canola here at home for oil, instead of relying on exports. But that’ll take time.

As Guelly puts it: “We’re not fighting the weather anymore—we’re fighting the market.”

What do you think about this trade dispute? Should Canada back down or stand its ground? Let us know in the comments.

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