Saskatchewan farmers brace as China imposes tariffs on crops

Saskatchewan farmers are feeling the weight of an escalating global trade war after China announced retaliatory tariffs on Canadian canola oil, peas and oil cakes.

The move follows the federal government's decision on Oct. 1 to impose 100 per cent tariffs on Chinese electric vehicles and a 25 per cent levy on its aluminum and steel products. 

Bill Prybylski, president of the Agriculture Producers Association of Saskatchewan, says producers saw this coming.

"We're not surprised," Prybylski said. "Ever since the federal government announced tariffs on Chinese electric vehicles, it was highly anticipated that the Chinese government would retaliate in some manner."

Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, says China's decision is part of a strategic geopolitical move. 

"China has a history of using tariffs as a political tool," Charlebois said. "This isn't just about trade — it's about exerting pressure on Canada."

Prybylski says canola is a cornerstone of Saskatchewan's economy, with about 20 million acres seeded annually. 

Lee Moats, a Saskatchewan farmer and former board member of Saskatchewan Pulse Growers, says the tariffs are going to hurt farmers in western Canada.

"Canola and peas are two very important markets for western Canadian farmers," Moats said. "In a world of uncertainty, this just adds a new and disturbing level of uncertainty for us."

Prybylski says China and the United States are the province's biggest export markets, meaning any disruption in trade has serious financial consequences for producers.

"Anytime there's a tariff like this, it's going to affect prices," Prybylski explained.

"When there was talk of tariffs going into the United States, our canola prices took a sharp drop. They've since recovered somewhat, but now they're on a decline again. This is just going to exacerbate the situation."

Moats agrees.

"If we're shut out of these marketplaces, that would have a very significant and perhaps catastrophic impact on our canola industry," he said.

Moats says farmers like himself have no choice but to move forward in this new market reality.

"We have no way of impacting what the governments of the U.S. or China do. We're just having to adapt. This will be a test of whether we have the resilience and financial planning to tolerate a shock to our marketplace."