China Cuts Tariffs on Canadian Canola in Strategic Push to Tighten Relations
By Reuters | 28 Feb, 2026

As the US works to penalize trading partners China seeks to grow economic ties to build a global trading network that decentralizes the US.

Canola crops grow at a farm in Saskatoon, Saskatchewan, Canada, July 14, 2025. REUTERS/Ed White

China on Saturday sharply reduced its tariff rate on Canadian canola in the final ruling of a 17-month anti-dumping investigation, following a thaw in relations between Beijing and Ottawa.

The announcement came a day after China said it would suspend some tariffs on Canadian agricultural products imposed during its trade spat with Canada.

The final anti-dumping tariff was lowered to 5.9% from a preliminary 75.8% imposed in August, according to a statement from the commerce ministry. The levy will be effective from March 1 and will last for five years.

In addition to the anti-dumping duty, Canadian canola remains subject to China's standard 9% import tariff, bringing the total effective duty to 14.9%.

The outcome broadly aligns with Canadian Prime Minister Mark Carney's expectations. After his visit to Beijing in January, Carney had said he anticipated a total tariff rate of around 15%.

China was Canada's second-largest market for canola in 2024.

The decision comes amid a wave of visits to Beijing by Western leaders, including Carney, as U.S. President Donald Trump's trade policies have strained Washington's traditional alliances. China has sought to present itself as a more stable and reliable economic partner in contrast.

Carney went further than his European counterparts by securing a deal with China and signalling Canada's ambition to play a leading role in a new global trade order aimed at reducing dependence on the United States.

China's Ministry of Commerce said on Saturday that its probe determined that imported rapeseed from Canada involved dumping and harmed China's domestic rapeseed industry.

The new levies "can alleviate pressure on the domestic sector and help maintain healthy and stable development of the industry."

The ministry added that the ruling was based on facts and evidence, and also took into account reasonable requests of the Canadian side.

"China is willing to work with Canada to continue deepening economic and trade cooperation between the two countries and enhance the well-being of the people on both sides," the ministry said.

(Reporting by Ella Cao in Beijing and Shanghai newsroom; Editing by Tom Hogue and Sam Holmes)