Targeted supports are needed due to China’s tariffs
Alberta’s canola sector is asking the federal government for compensation to help offset challenges caused by Chinese tariffs.
In a May 8 letter to the federal finance and agriculture ministers, Alberta Canola Growers says targeted compensation is necessary due to the challenges the industry faced starting in 2024.
That year, China launched an anti-dumping probe into Canadian canola after Canada imposed tariffs on Chinese electric vehicles, steel, and aluminum.
“Alberta Canola respectfully requests that the Government of Canada implement a targeted compensation program for canola growers to recognize the extraordinary nature of the disruption,” the letter says.
This request follows support the organization received during local meetings.
Those Chinese tariffs, which reached 85 per cent on Canadian canola seed, effectively cut off Canada from the Chinese market.
And China accounts for more than 50 per cent of Canadian canola exports.
“With limited alternative markets available, many farmers were forced to sell their grain at discounted and uncompetitive prices. This resulted from a wide range of pressures, including debt servicing requirements, storage limitations and contractual obligations to sell,” Alberta Canola’s letter reads.
The letter doesn’t include details about what a compensation package could look like.
The federal government has provided some support and made progress with China on the canola file.
In September 2025, Prime Minister Carney announced $370 million in funding to support a new biofuel production incentive, and increased loan limits for canola growers to $500,000.
Those measures fall short of what’s necessary, the canola industry said.
In January 2026 the prime minister traveled to China to meet with officials about the tariffs on canola, peas, pork, and seafood.
Then on March 1 China lowered its tariffs on Canadian canola seed to 14.9 per cent, and committed to removing its anti-discrimination tariffs on canola meal until the end of 2026.
In exchange for lower ag tariffs, Canada lowered its tariffs on Chinese EVs.
Canada will allow up to 49,000 EVs into the country at a tariff rate of 6.1 per cent.