Canada’s status as the dominant supplier of canola to China appears to be under threat as shipments plunge amid a tit-for-tat tariff battle between the two nations. And Australia is already emerging as an alternative source of the staple vegetable oil, analysts and industry insiders say.
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China’s imports of canola from Canada fell by 55 per cent year on year to 173,250 tonnes in July – the lowest level recorded since July 2023 – Chinese customs data showed. The value of those shipments was down 49 per cent year on year at US$102.06 million.
The plummet in Chinese demand follows Beijing’s decision to impose steep tariffs on Canadian agricultural products in March – including a 100 per cent levy on canola – in response to Ottawa placing high duties on Chinese electric vehicles.
Canada was previously China’s top source of imported canola, supplying all of China’s imports of the crop in 2023 and 2024, according to official data. But China now appears to be exploring alternatives.
Official figures have not yet been released for last month’s canola trade between China and Australia, but sources in the Australian grain industry told the Post that China was already making purchases.
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“China is buying canola from Australia, as a trial shipment, in the vicinity of 50,000 tonnes,” an industry source said on condition of anonymity due to the sensitivity of the topic.