The tariffs are a result of China’s anti-discrimination investigation into Canadian imports. A separate anti-dumping investigation into Canadian canola imports remains ongoing and is expected to conclude by September 2025.
The Chinese Ministry of Commerce (MOFCOM) is levying new tariffs on Canadian agricultural imports, effective March 20, 2025. This comes in response to Canada’s decision to impose tariffs on Chinese-made electric vehicles, steel, and aluminum last year.
On Saturday, China’s State Council Tariff Commission announced that a 100% tariff would be imposed on Canadian agricultural imports worth over $1 billion, including rapeseed (canola) oil, oil cakes, and peas.
Moreover, a 25% duty would apply to $1.6 billion worth of Canadian pork and seafood products.
Canada had introduced its China Surtax Order (2024) last October to implement a 100% surtax on Chinese electric vehicles, followed by a 25% duty on steel and aluminum from China.
This move mirrors one taken earlier by the Biden Administration under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862). President Trump reinstated this action in February 2025 and further increased aluminum tariffs from 10% to 25%.
China is Canada’s second-largest trading partner. According to Chinese customs data, Canada exported goods worth $47 billion to China in 2024.
China had launched two separate investigations on Canadian imports in September 2024, one on the basis of anti-discrimination and another on anti-dumping.
The anti-discrimination investigation, initiated on 26 September, was based on concerns that Canada’s measures on Chinese imports were unfair and inconsistent with World Trade Organization (WTO) rules.
The newly announced tariffs on Canadian agricultural imports and aquatic products are part of the final ruling of this investigation.
Separately, on September 9, China initiated an anti-dumping investigation into Canadian canola imports to determine if they are being sold in China at unfairly low prices.
Covering canola imports from January to December 2023, this ongoing investigation is expected to conclude by September 2025.
Rapeseed, also known as Canola, is one of Canada's top exports to China.
As part of the final ruling of its anti-discrimination investigation, China will be imposing a 100% tariff on Canadian canola oil and canola meal.
More than half of Canada’s canola exports go to China, and the trade was worth $5 billion in 2024. This included 2 million metric tonnes of canola meal worth $921 million and 644 metric tonnes of canola oil valued at $1.5 million.
Chris Davison, Canola Council of Canada (CCC) President & CEO, said, “New tariffs from China on Canadian canola oil and meal will have a devastating impact on canola farmers and the broader value chain.”
“We urge the federal government to immediately engage with China, with a view to resolving this issue,” he continued.
The Canola Council of Canada (CCC) and Canadian Canola Growers Association (CCGA) will continue to work closely with the Canadian Government and industry stakeholders until the issue is resolved.
At Cole International, we offer trade consulting services to help Canadian businesses navigate changes in global trade policies.
We also provide expert guidance and hands-on support on customs regulations to ensure business continuity and facilitate compliance with changing trade requirements.
To discuss the potential impact of these tariffs on your operations and the best strategies to prepare your business, please reach out to one of our trade professionals.