Retaliatory Chinese tariffs on canola oil causing uncertainty in Sask.

The chair of Sask Oilseeds says China’s retaliatory tariffs on Canadian canola oil will spell trouble for farmers and canola crushers alike.

“This is going to place a lot of pressure on our domestic crushers,” Dean Roberts said.

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“There’s been a lot of investment made in expansion over the last few years, and this uncertainty and unpredictability in the market will not be supportive for those investments and the markets that farmers are trying to deliver and sell into.”

China announced that the 100-per-cent tariffs would take effect on March 20 in response to the 100-per-cent tariffs Canada placed on Chinese-made electric vehicles in 2024, and its 25-per-cent levy on Chinese steel and aluminum.

A study commissioned by the Canola Council of Canada pegged the industry’s annual economic impact at around $43.7 billion. The study also said it provided 206,000 full-time equivalent jobs and $16.3 billion in wages per year.

“So what does that mean for Saskatchewan? Well, we grow a little over half of the crop, which for us means about 91,000 jobs – directly and indirectly – and an economic impact of about $19.8 billion,” Roberts said.

“The reach of canola is very significant in the province.”

Roberts said jobs in Saskatchewan’s canola crushing industry could be at risk, as well as planned expansion projects by companies like the Louis Dreyfus Company and Cargill.

“These tariffs create uncertainty around the market, and it makes it very hard for for companies and farmers to operate in these conditions,” Roberts said.

“I’ve learned over the course of my career, whenever there’s an issue with our grain markets, there was always significant pain felt at the farm gate.”

Premier Scott Moe has called on Prime Minister Mark Carney to engage in talks with China in order to prevent the tariffs from being imposed.

“There needs to be action by our federal government before any election call to engage with China to ensure the canola industry is not left in purgatory,” Moe said.

“The legacy of closed canola crush plants across Saskatchewan and across Canada would be the Liberal government’s to wear.”

–with files from The Canadian Press