China imposes preliminary 75.8% anti-dumping duty on Canadian canola

China announced preliminary anti-dumping duties of 75.8% on Canadian canola imports, effective August 14, escalating a year-long trade dispute that began with Canadian tariffs on Chinese electric vehicles.

The Canadian government rejected the finding, stating it does not dump canola and expressing disappointment with China’s decision, Caliber.Az reports via Reuters. 

“Canada is committed to ensuring fair market access for our canola industry and we remain ready to engage in constructive dialogue with Chinese officials to address our respective trade concerns,” said International Trade Minister Maninder Sidhu and Agriculture Minister Heath MacDonald.

The move effectively shuts Canada out of China’s market, previously the destination for nearly C$5 billion ($3.64 billion) of Canadian canola exports in 2024.

“This really came as a surprise and a shock,” said trader Tony Tryhuk of RBC Dominion Securities. Canola Council of Canada President Chris Davison noted the duty rate makes the Chinese market effectively closed for Canadian canola.

China sources nearly all its canola from Canada, using it for animal feed and cooking oil.

“This is huge. Who will pay a 75% deposit to bring Canadian canola to China? It is like telling Canada that we don't need your canola, thank you very much,” said a Singapore-based oilseed trader.

Analysts note that replacing Canadian canola on short notice will be difficult, even if Australia increases exports.

“Fully replacing Canadian canola will be very difficult unless import demand drops sharply,” said Donatas Jankauskas of CM Navigator.

China’s Ministry of Commerce said an anti-dumping probe launched in September 2024 found Canada’s canola sector benefited from substantial government subsidies and preferential policies, claims rejected by the Canadian government and industry.

ICE November canola futures fell about $30 to $650.30 per metric ton after the announcement. A final ruling could adjust the duty rate or overturn the preliminary decision.

“This move ... will put additional pressure on Canada's government to sort through trade frictions with China,” said Trivium China agriculture analyst Even Rogers Pay. Canadian farmers are entering harvest season and could face falling prices. “It's going to certainly have a damping effect on price for farmers and they're going to be stuck with that,” said Canadian Canola Growers Association President Rick White.

China also launched anti-dumping investigations into Canadian pea starch and imposed provisional duties on halogenated butyl rubber.

By Sabina Mammadli