China’s government in Beijing says it has opened an anti-dumping probe into canola imports from Canada, ratcheting up trade tensions between the two nations.
The investigation into Canada’s canola imports comes days after government officials in Ottawa announced that they are imposing 100% tariffs on imports of Chinese electric vehicles (EVs).
Canada’s federal government called the canola investigation on the part of China “deeply concerning” and vowed to support the domestic farm sector.
The 100% tariff on imports of Chinese electric vehicles, as well as a 25% tariff on imported steel and aluminium products from China, mirrors recent actions taken by the U.S. and European Union.
Chinese authorities in Beijing called the actions by Canada “discriminatory” and “restrictive” and have said they plan to initiate an anti-dumping investigation into some Canadian chemical products.
These appear to be the latest salvos in what is quickly becoming an escalating trade spat between China and Canada.
More than half of all canola exports from Canada are sent to China, the world’s biggest oilseed importer. Canola is widely used as a cooking oil and a renewable fuel in China.
The Canola Council of Canada has said that Canadian exports of canola to China totalled $5 billion in 2023.
Canola prices fell 7% to $569.70 U.S. per metric ton on news of the anti-dumping probe on the part of China.
