Alberta Premier Danielle Smith is urging the federal government to reconsider its 100 percent tariff on Chinese-made electric vehicles. She believes this tariff is a key factor in the recent trade dispute with China, which has led to anti-dumping duties on Canadian canola seed.

As Canada’s agriculture minister prepares to meet with canola industry leaders and Saskatchewan’s premier, Smith emphasized the need for federal assistance for farmers affected by the escalating trade tensions. “We will have to see the same kind of measures for canola and maybe even pork that we’ve seen for steel and aluminum workers,” Smith said. She suggested that farmers may require transition allowances to help them cope with income losses and to explore new markets.

Smith pointed out that the retaliatory tariffs from China are directly linked to the Canadian government's actions. “With canola in particular, we also know that it’s retaliation for the 100 percent EV tax. And it seems to me that the federal government needs to work on that,” she added.

Prime Minister Mark Carney has been in discussions with Saskatchewan Premier Scott Moe regarding support options for canola growers facing these tariffs. Moe is set to host a meeting in Saskatoon with federal Agriculture Minister Heath MacDonald and canola sector leaders to address the situation.

Last August, Canada imposed a 100 percent surcharge on Chinese electric vehicles, following a similar move by the United States. In response, China implemented a 100 percent tariff on Canadian canola meal, canola oil, and peas, along with smaller tariffs on pork and seafood imports. Recently, China began enforcing preliminary anti-dumping duties of 75.8 percent on Canadian canola seed, a claim that the Canadian government and industry groups dispute.

Canadian canola producers are feeling the impact of this trade conflict, with many calling for federal support. Alberta Canola Producers Commission chair Andre Harpe stated, “They need to stand behind us. We can’t be the front-line warriors on this.” Last year, China was the second-largest market for Canadian canola, with exports valued at $4.9 billion.

Smith criticized the current trade strategy, arguing that it is illogical to impose a punitive tax on an emerging industry while established sectors like canola and pork suffer. “It makes no sense to have a punitive tax to protect an industry that doesn’t yet exist in Canada, which is the EV vehicle industry, at the same time as we’re getting punished on canola and pork,” she said.

Moe has expressed the need for the prime minister to prioritize engagement with China to resolve the trade issues. He plans to invite Carney to accompany him on a trip to China to seek solutions.

The canola sector employs over 200,000 Canadians, and industry leaders are urging the federal government to develop a compensation plan for those affected by the tariffs. The Canola Council of Canada’s CEO, Chris Davison, emphasized the need for support across the entire value chain, starting at the farm level.

Experts in agricultural economics stress the importance of restoring access to the Chinese market. Derek Brewin, a professor at the University of Manitoba, noted, “China is one of the biggest importers of canola in the world. We’re the biggest exporter, so trade trouble between us is really important.”

As discussions continue, the future of Canadian canola exports hangs in the balance, with farmers and industry leaders looking for a resolution to the ongoing trade conflict.