China announced on 8 March that it was imposing 100% tariffs on rapeseed oil and meal from Canada, leaving the country and new prime minister Mark Carney to juggle trade wars on two major fronts, CEO Morning Brief reported, citing a Bloomberg article.
The Chinese measure, due to come into effect on 20 March, was a response to Canadian tariffs on Chinese-made electric vehicles, steel and aluminium introduced last year, the 10 March report said.
Canada is also facing 25% tariffs on its exports to the USA, including canola seed, oil and meal.
“Canadian canola farmers are facing an unprecedented situation of trade uncertainty from our two largest export markets only weeks before planting begins,” Rick White, the president and CEO of the Canadian Canola Growers Association, said in a statement on 8 March.
China is Canada’s leading export destination for canola, a specific variety of rapeseed with lower levels of erucic acid and glucosinolates.
Although China’s move was sweeping, no tariffs were imposed on canola seed, which China imported in larger volumes than its oil and meal, CEO Morning Brief said.
China also has an ongoing anti-dumping probe into Canadian rapeseed imports, leaving open the possibility of further measures, according to the report.
“The lack of tariffs on Canadian canola seed shows a hesitancy by China to further constrain its oilseed sourcing options,” analyst Dennis Voznesenski at Commonwealth Bank of Australia was quoted as saying in a written note.
China’s inbound shipments of rapeseed totalled 6.39M tonnes last year, almost all of which came from Canada, the report said.
According to Chinese customs data, China also imported about 2.74M tonnes of canola meal last year, with the USA as the top supplier.
Earlier this month, China imposed a 10% tariff on US commodities such as soyabeans, sorghum, beef and dairy products, and a 15% tariff on items wheat, corn and cotton in response to 25% tariffs on its goods announced by the USA on 4 March. China’s tariffs on the USA came into effect on 10 March.
