ChinaSlashesCanadianCanolaDutiesAfterCarneyVisit

China sharply reduced tariffs on Canadian canola over the weekend, marking a major de-escalation in bilateral trade tensions following Canadian Prime Minister Mark Carney’s recent visit.

China's Ministry of Commerce confirmed Saturday that it would impose a 5.9% anti-dumping duty on Canadian canola, effective March 1 and lasting five years. The rate is far below the provisional 75.8% deposit Beijing had required last year after a preliminary ruling found that Canadian exporters were selling at unfairly low prices.

A spokesperson said China has always preferred resolving trade differences through dialogue and had taken into account “reasonable concerns” raised by Ottawa before issuing its final ruling. China also suspended additional discriminatory tariffs on certain Canadian goods from March 1 through Dec. 31.

Canada is the world’s largest producer of canola and China’s top supplier. In 2024, China imported approximately 6.39 million tons of canola, with 96% originating from Canada, according to Chinese customs data. Following the announcement of preliminary tariffs, imports plummeted to about 2.5 million tons in 2025, though Canada still accounted for 95% of the total.

The trade conflict began in October 2024 when Canada imposed a 100% surtax on Chinese new-energy vehicles and a 25% levy on steel and aluminum. Beijing condemned the moves as protectionist and retaliated with tariffs on Canadian agricultural products, including peas, canola oil, and pork.

Relations began to thaw during Carney’s visit to Beijing in January 2026, the first by a Canadian leader in eight years. The two sides signed a joint statement and a roadmap for economic cooperation.

As part of the diplomatic breakthrough, Ottawa announced on Jan. 16 that it would allow an annual quota of up to 49,000 Chinese new-energy vehicles to enter Canada at a most-favored-nation tariff rate of 6.1%, effectively opening the North American market to Chinese automakers.

Contact editor Kelsey Cheng (kelseycheng@caixin.com)