100-per-cent tariffs: Sask. farmer worries canola seed could be China next target

The tariff, set to take effect March 20, will impose a 100 per cent duty on more than $1 billion worth of Canadian rapeseed oil, oil cakes and pea imports, as well as a 25 per cent duty on $1.6 billion worth of aquatic products and pork.

While the new restriction does not currently apply to seed, Wallace fears it could be next.

“That’s the risk right now … that could be what’s coming next, and China is our largest buyer of seed,” he said.

According to the Canola Council of Canada, China remains a key market for Canadian canola and canola products. In 2024, total exports to China were valued at almost $5 billion, including two million metric tonnes of canola meal, worth $918 million, and 15,351 metric tonnes of canola oil, valued at $20.6 million.

Wallace said the current situation could deal a significant financial blow to farmers.

“You’re probably talking about $100 an acre in loss, which for us is … pushing half a million dollars off on our farm,” he said.

The tariffs are widely viewed as retaliation for electric vehicle levies imposed by Canada and the United States last fall.

“I think it just kind of got forgotten about and now it’s here,” Wallace said.

As of Oct. 1, 2024, Canada has imposed a 100 per cent tariff on all Chinese-made electric vehicles, including certain hybrid passenger cars, trucks, buses and delivery vans. The tariff is in addition to the 6.1 per cent Most-Favoured Nation import tariff.

The uncertainty has already hit prices, forcing difficult decisions for producers.

“If you’ve got bills to pay and you need to generate cash flow … the price [of canola] dropped … $2 to $3 a bushel today,” Wallace said. “If you’ve got canola in the bin, we’re talking big dollars in change in the value.”

Tracy Broughton, executive director of SaskCanola, said since the tariff only applies to canola oil and meal, canola seed exports still have a pathway to China—at least for now.

Noting that the ongoing trade tensions between Canada, the U.S. and China make it difficult to predict how the tariffs will affect farmers in the long run.

“There’s so many different forces that are impacting the market, and most farmers can’t necessarily react and pivot as quickly as maybe the market would suggest, so they do have to plan for a longer term,” she said.

Wallace believes the federal government should focus on easing tensions with China to prevent further escalation.

“If we could work on these EV tariffs from China … we would have to negotiate with them,” he said. “That’s what the retaliatory tariffs are doing, I guess … they’ve got to bring the negotiations to the table.”

For now, he is urging farmers not to panic.

“I think farmers need to remind themselves not to panic … I think it will be short-lived, but there’s going to be some short-term pain unfortunately right now,” he said.

But as market uncertainty looms, he said farmers must make careful financial decisions.

“As farmers, we’ve got to know when we’re profitable and make appropriate sales,” Wallace said. “Right now, if you’re selling canola, it’s probably not profitable. If a farmer can hold on, I think that’s the wiser thing to do.”

-With files from 650 CKOM news-

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Kenneth.Cheung@pattisonmedia.com

by Kenneth Cheung

100-per-cent tariffs: Sask. farmer worries canola seed could be China next target

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