Canola sector sees tariff pain ahead

Glacier FarmMedia—The canola sector says U.S. tariffs will levy considerable economic pain throughout that value chain.

Today the Trump administration confirmed that previously announced tariffs of 25 per cent will be applied to imports of a broad range of Canadian goods, including canola seed, oil, and meal, effective immediately.

“The U.S. decision to go forward with 25 per cent tariffs on Canadian-grown canola and canola products will be felt across the canola value chain, with devastating impacts on farmers, input providers, canola crushing activities, and exports of canola seed, oil, and meal,” said Chris Davison, Canola Council of Canada (CCC) president and CEO, in a media release.

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NUMBER ONE CANOLA MARKET

The U.S. is Canada’s number one market for canola exports and also a market that is highly integrated with the Canadian canola industry. Total export value in 2023 was $8.6 billion and in 2024 reached $7.7 billion, with record high volumes including 3.3 million tonnes of canola oil and 3.8 million tonnes of canola meal.

The national canola growers’ group also weighed in.

“The uncertainty created by this situation continues to impact farmers as they inch closer to planting the 2025 crop,” said Rick White, Canadian Canola Growers Association (CCGA) president and CEO. “The damaging blow caused by tariffs will be felt by every canola farmer, starting with the price they receive at delivery and will extend to the full range of their operations, ultimately reducing farm profitability.”

A recent analysis completed by the CCC on the impact Canadian-grown canola has on the U.S. economy also draws attention to the economic benefits the U.S. derives from the Canadian canola industry, which averages US$11.2 billion per year and includes US$1.2 billion in wages.

There is U.S.-based processing and refining, transportation, bottling and packing, and it is also widely used in food products, restaurants, and the livestock sector on that side of the border.

STRENGTHENING TRADE RELATIONSHIPS

The two groups said they will be “focused on strengthening the Canada-U.S. trade relationship and amplifying the mutual benefit our nations receive from canola trade” by conducting advocacy activities in the U.S. and engaging with the Canadian government to advance the canola sector’s interests.

“The canola industry delivers a true win-win for both Canada and the U.S., and we must do everything we can to restore smooth, predictable, tariff-free canola trade between our two countries,” the release read.