Canadian canola growers are breathing easier after Canada avoided the worst of US President Donald Trump’s tariffs on Wednesday. However, continued uncertainty about trade remains, industry groups say.
In his so-called ‘liberation day’ announcement at the White House, Trump unveiled a 10% baseline tariff on most imports into the U.S., with higher duties on other trade partners, including China and the European Union.
And while other tariffs the president previously announced are still in effect, including a 25% levy on American imports of Canadian steel and aluminum, Canada and Mexico were both spared the 10% baseline tariff. As such, any goods compliant with the US-Mexico-Canada free trade agreement signed during Trump’s first term in office will continue to see a 0% tariff.
“This announcement from the President is welcome news to Canadian canola farmers and the entire Canadian canola industry,” Chris Davison, Canola Council of Canada (CCC) President & CEO, said in a statement Thursday.
But the industry is not out of the woods yet, with Trump’s history and unpredictability suggesting he could change his tack at any time.
“Concerns over US tariffs add considerable uncertainty for farmers preparing to plant the 2025 canola crop,” said Rick White, President & CEO at Canadian Canola Growers Association (CCGA). “While the threat of immediate tariffs has been reduced, the risk and uncertainty of tariffs has not been eliminated. Our advocacy work to strengthen Canada-U.S. trade relations will continue.”
The US is Canada’s No. 1 market for canola exports and is highly integrated with the Canadian canola industry. Total export value 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.
Meanwhile, previously announced 100% tariffs that China slapped on Canadian imports of Canadian canola oil and canola meal last month remain in effect. Further, 34% retaliatory tariffs on all imports from the US announced by China on Friday have pounded the Chicago soy complex, helping to drag canola futures lower as well.
Canola is the single largest contributor to farm crop cash receipts – grown by nearly 40,000 farmers across the country.
