Carney said he had spoken with Saskatchewan premier Scott Moe and confirmed the federal and provincial governments were focused on measures to help farmers. The Chinese tariffs would cause significant hardship for western Canadian farmers, as canola is their biggest cash crop, Carney said, according to The Wall Street Journal.
The Chinese embassy in Ottawa has not yet commented on the matter.
Trade measures behind the dispute
The canola tariffs follow Canada’s move in 2024 to impose a 100% tariff on Chinese-made electric vehicles in alignment with US policy. Last month, Canada also announced new restrictions on steel imports, including a 25% surtax on products containing steel melted or poured in China.
Carney said at the time that certain foreign competition “unfairly benefits” from non-market policies, such as exporting products at lower prices than those charged domestically.
China responds through WTO
Beijing has taken its case to the World Trade Organization (WTO). The Chinese commerce ministry said Canada’s measures are “discriminatory” and amount to “a prototypical measure reflecting unilateralism and protectionism, which damages China’s legal rights and disrupts the global stability of steel product supply chains.”