Hub Podcasts Why China is tariffing Canada: Canola industry under attack
Aug 13, 2025
Bill Hawkins, an advisor at the Canada-ASEAN Business Council and former chief of staff to Canada's international trade minister, shares his insights on China's aggressive tariffs on Canadian canola. He discusses how these tariffs reflect deeper trade tensions, particularly influenced by the U.S.-Canada trade disputes. Bill highlights the strategic implications for Canada’s trade policies and the need for a rethink in light of changing global dynamics. The conversation also touches on the intricate web of international trade relationships affecting Canada’s economy.
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China Uses Canola As Leverage
- China used tariffs on canola and other ag products as targeted economic coercion after Canada matched U.S. EV tariffs.
- The new seed tariffs aim to kill a $4 billion trade and leverage Canada before its EV tariff review.
2019 Canola Tariff Retaliation Recalled
- Bill Hawkins recounts the 2019 episode when China imposed canola tariffs after the Huawei extradition and detained two Canadians.
- He notes China removed those measures in 2022 but has resumed aggressive targeting now.
China Targets Allies, Not The U.S.
- Canada followed the U.S. and EU with steep EV tariffs, prompting China to retaliate selectively against Canada and the EU.
- China avoided hitting the U.S. directly and instead targeted more vulnerable partners to deter alignment.