Canada Responds to China’s Tariff Increases on Agricultural Exports

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Canada’s agricultural sector maintains high global standards, ensuring quality food products for domestic and international markets. Following China’s anti-discrimination investigation against Canada, China has imposed 100% tariffs on canola oil, canola meal, and peas, along with 25% tariffs on select pork, fish, and seafood products. The Government of Canada is deeply disappointed, citing economic harm to Canadian producers and increased costs for Chinese consumers.

In response, the Honourable Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development, announced enhanced AgriStability support:

  • Compensation rate increase from 80% to 90%.
  • Doubling of the payment cap to $6 million, the first increase in over 20 years.
  • Option for provinces and territories to provide interim payments up to 75% of estimated final payments.
  • Targeted Advance Payments for sectors facing major disruptions, including tariffs and African Swine Fever in the hog sector.

The Government of Canada remains committed to supporting the agricultural industry through trade diversification and risk management programs like AgriStability, AgriInvest, AgriInsurance, and the Advance Payments Program.

Minister’s Statement

“China’s tariffs will significantly impact Canadian farm families and communities. While we diversify trade and seek new markets, immediate support is needed. Today’s announcement directly responds to industry concerns and underscores our commitment to producers.” — The Honourable Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development

Quick Facts

  • Canola is Canada’s second-largest acreage crop, generating $13.6 billion in farm cash receipts in 2023.
  • In 2024, Canada’s canola meal exports to China were valued at $920.9 million, canola oil at $21 million, and pea exports at $303.6 million.
  • Pork exports to China in 2024 were worth $468.6 million.
  • Canada-U.S. bilateral agri-food trade totaled $101.3 billion (CAD) in 2024.
  • The federal government funds 60% of AgriStability, with provinces/territories covering 40%.

The second intake for AgriMarketing, AgriCompetitiveness, and AgriDiversity programs under the Sustainable Canadian Agricultural Partnership is open. Farm Credit Canada has also introduced $1 billion in new lending through the Trade Disruption Customer Support program to assist producers affected by U.S. tariffs.

The Government of Canada continues to monitor the situation and advocate for fair trade to ensure the success of Canadian agriculture.