In response to Canada’s recent imposition of tariffs on Chinese electric vehicles, China announced on Tuesday that it will initiate an anti-dumping investigation into canola imports from Canada. This move, which also includes an investigation into certain Canadian chemical products, comes after Canada followed the lead of the United States and European Union by imposing a 100 percent tariff on Chinese-made electric vehicles and a 25 percent tariff on Chinese steel and aluminum imports.
China’s Ministry of Commerce strongly condemned Canada’s actions, labeling them as “discriminatory unilateral restrictive measures” and vowed to pursue the matter through the World Trade Organization’s dispute settlement mechanism.
Canola, a key export for Canada, is primarily shipped to China, which is the world’s largest importer of oilseeds. Following the announcement, China’s rapeseed meal futures surged six percent, while the ICE canola contract for November delivery in Canada plummeted by seven percent.
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China’s investigation claims that Canadian canola exports, which surged by 170 percent in volume in 2023, are being sold at unfairly low prices, harming China’s domestic rapeseed industry. As tensions escalate, analysts suggest China may seek alternative canola suppliers, such as Australia, to mitigate the impact of any potential trade restrictions on Canadian imports.
