China announced a 75.8 per cent preliminary tariff on Canadian canola on Tuesday, following an anti-dumping investigation launched last year in response to Canada's tax on Chinese electric vehicles.
China's Ministry of Commerce published the details of the plan on Tuesday, claiming the "dumping" of Canadian canola into the Chinese market is hurting its domestic canola oil market.
The Canola Council of Canada says "anti-dumping investigations are initiated when a country suspects a product is being imported at a lower price than it is sold for in the domestic country in which it is produced.
"The CCC believes strongly that Canada’s canola trade with China is aligned with international rules-based trade," says a statement on the organization's website, posted before China's announcement.
The council has not yet commented on Tuesday's tariff decision.
China's commerce ministry also said in a separate social media post Tuesday that the two countries met four days ago to discuss trade.
"The two sides had in-depth and frank exchanges on bilateral economic and trade relations and key economic and trade concerns of both sides, and exchanged views on deepening bilateral, regional, and multilateral economic and trade co-operation," the post read.
The Prime Minister's Office deferred comment on the canola tariffs to the minister of international trade, who did not immediately respond to a request for comment.
Canada imposed a 100 per cent tariff on Chinese electric vehicles in October 2024, a move that is to be reviewed within one year.
Canada supplies China with most of its canola but China currently exports very few electric vehicles to Canada.
When Canada levied tariffs on Chinese EVs last year — which are significantly less expensive than North American-made EVs, in part because of lower labour and environmental standards and state subsidies — it justified the move as protecting "the transformation and planned investments in Canada’s vehicle sector."
"Actors like China have chosen to give themselves an unfair advantage in the global marketplace, compromising the security of our critical industries and displacing dedicated Canadian auto and metal workers. So, we're taking action to address that," then-Prime Minister Justin Trudeau said at the time.
The Chinese EV tariff also matched a similar move made by then U.S. president Joe Biden.
But with EV sales slumping in Canada following the abrupt ending of the government's popular Incentive for Zero-Emission Vehicle program, which provided up to $5,000 toward the cost of a new EV, environmental groups have called on Canada to revisit the Chinese EV tariff to help drive competition in the Canadian market.
"Allowing in a limited quota of these affordable vehicles while also recognizing EU-approved vehicles … would open Canada’s vehicle market to fill important market gaps, drive innovation and ultimately make our auto sector more competitive,” Clean Energy Canada said back in July.
Canada has pledged to bring back some form of rebate for Canadians wanting to buy a new EV, but hasn't given a timeline for when such a measure would be implemented.
Picture Courtesy: THE CANADIAN PRESS/Jeff McIntosh
