New trade dispute impacts Manitoba’s agriculture as China imposes duties on Canadian canola

A new trade dispute is hitting Manitoba’s agriculture sector, as China moves to slap steep tariffs on Canadian canola, a crop the province exports around the world.

China announced preliminary tariffs on Canadian canola Tuesday, nearly a year after Canada imposed a 100 per cent tariff on Chinese electric vehicles, a measure set for review in early October.

Canada exported nearly 3.5 million tonnes of Canola to China in 2024, valued at $4.9 billion. Starting Thursday, Canadian canola will face a 75.8 percent duty

“Were a relatively small grower compared to Saskatchewan and Alberta, but it’s still the largest contributor to the Manitoba economy in terms of over 2.2 billion dollars,” said Dr. Michael Eskin, University of Manitoba professor in the Department of Food and Human Nutritional Sciences.

“Were going to continue working with the federal government while so many are focuses on the Trump tariffs, we also got to keep in mind Chinese tariffs hitting our agriculture industry, ag puts food on the table and we need to be there to stand up to protect our farmers, our producers and exporters,” said Wab Kinew, Premier of Manitoba.

The Canola Council of Canada and the Canadian Canola Growers Association expressed deep disappointment with the tariff, which they say closes a vital market, and they are now calling on federal support to fix the issue

“I hope the government of Canada is doing something to fix this situation,” said Dr. Eskin.

Dr. Erskin is a key contributor to the development of canola oil in Manitoba, as he has spent decades researching canola’s impact on the Manitoba economy. The professor echoed his frustration and highlighted how it might force the province to find solutions elsewhere.

“It’s going to change the way we deal with canola and maybe there are markets outside that we haven’t considered,” he said.