Canada’s %Canola crop is facing a double whammy of import %Tariffs from both the United States and China.
Economists and commodities traders say that Canada’s canola crop likely has the most to lose from U.S. President Donald Trump’s new reciprocal trade tariffs that go into effect on April 2.
The oilseed is already facing stiff tariffs from China with new U.S. duties set to be implemented.
China and America are two of the biggest markets for Canada’s canola crop, buying a combined C$12.6 billion of the agriculture staple in 2024, according to the Canola Council of Canada.
China recently slapped a 100% tariff on Canadian canola oil and other canola products in retaliation for Canada placing duties on imported Chinese electric vehicles.
Now, President Trump is threatening to impose blanket 20% tariffs on all imports from Canada and other nations, including agricultural products.
The current situation has led to demand uncertainty just before the spring planting season on Canada’s vast prairie region.
While many growers have already bought the seed they expect to plant, many Canadian farmers say they’re planning to switch to crops such as wheat, soybeans and corn this year.
According to data from Statistics Canada, farmers are expected to plant less canola and boost acres of wheat this spring due to the tariff uncertainty.
In all, Canadian farmers plan to plant 21.6 million acres of canola in 2025. Canola plantings in Canada peaked at 23 million acres back in 2017.
Canada is the world’s top producer of canola, followed by China and India. Canola is also used in biofuel production.
