Northern Ontario canola farmers brace for 100 per cent tariffs from China
Canola is Canada's second largest acreage crop with more than 21 million acres produced annually
Northern Ontario canola farmers are bracing for financial uncertainty as China's 100 per cent tariffs on Canadian canola oil and meal take effect Thursday.
The move is a direct response to Canada's 100 per cent tariffs on Chinese electric vehicles and 25 per cent tax on aluminum and steel products.
Will Runnalls, a canola farmer near New Liskeard and chair of Ontario's Canola Growers Association, says the impact is already being felt.
"There already was a price decline and the longer it continues, farmers might have issues even selling their canola, going forward," he said.
Canola is Canada's second largest acreage crop with more than 21 million acres produced annually, a federal news release said. Canola meal exports to China made up $920.9 million of Canada's economy in 2024 while canola oil exports to China made up about $21 million.
Canola is one of the top three cash crops in northern Ontario, alongside soybeans and spring wheat, according to Runnalls. Most of the region's production is concentrated in the Temiskaming and Nipissing districts.
While the new tariffs are expected to hit western Canada hardest, where the crop is primarily grown, Ontario growers are not immune.
"In eastern Canada, it's a smaller issue because our acres are small, so most of the by-products of canola meal and oil are used within Canada or the United States," Runnalls said.
"The bigger issue would be in Western Canada, where there's upwards of 20 million acres produced. All of that is exported either to the states or China. In Ontario, our price is based off the western price, so maybe we can still sell it, but if the price falls on the West, it falls here as well."
Farmers weigh their options amid uncertainty
Runnalls says the instability is forcing northern farmers to reconsider their crop choices. In Temiskaming, many growers have cut their canola acreage by 60 per cent, switching to soybeans, which can still be exported to Asian markets like Japan, Malaysia, and Taiwan.
With the planting season approaching, some farmers may still be able to adjust their plans, but others have no choice but to move forward.
"Most people would have ordered their seed because it has to be processed and bagged, and they might even have delivery of it," Runnalls said. "Depending on how it was purchased, they might be able to return it. They might not be able to."
The tariffs come as a direct response to Canada imposing 100 per cent tariffs on Chinese electric vehicles, something Runnalls says needs to be resolved at the negotiating table.
"I think, you know, we have to get back to the negotiating table, and we need the export market," he said. "There's been talks of financial support, but most producers, we don't want more loans. We need the export market. So we have to get back to the negotiating table and reach a solution."
He also says Canada shouldn't just focus on finding new trade partners but work to repair its existing relationships.
"We can do market diversification and find new markets, but we have to, you know, keep the same markets we have," Runnalls said. "Keep those relationships open, not just go look for a new market."
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