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Prime Minister Mark Carney says the government is launching a new $370 million production incentive to help Canada’s canola producers.
The government says its new biofuel production incentive is meant to address “immediate competitiveness challenges” as China imposes massive tariffs on Canadian canola seed.
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China hit Canadian canola with a 75.8 per cent tariff last month, a measure widely seen as a response to Canada’s 100 per cent tariff on Chinese electric vehicles.
Carney also says the government will amend its Clean Fuel Regulations to support the biofuels industry.
The government says it will also temporarily increase the amount producers can receive in interest-free advances, and boost funding to support diversification to new markets.
The canola measures were announced on Friday alongside a suite of supports for sectors most affected by U.S. tariffs.
Carney’s announcement came the day after the government said that a parliamentary secretary will visit China as part of Saskatchewan’s efforts to convince Beijing to scrap its canola tariffs.
Nova Scotia MP Kody Blois plans to join Saskatchewan Premier Scott Moe for the three-day trade mission, which starts Saturday, to “engage constructively with Chinese officials,” Carney’s office said. Officials hope to also address other “trade irritants” on the trip, the statement said.
China is the second-largest importer of Canadian canola products, behind only the United States.
Canada exported about $14.5 billion worth of canola products last year, according to the Canola Council of Canada, of which about $4.9 billion went to China.
The canola seed tariff came into force nearly a year after Beijing launched an anti-dumping probe into the crop.
China’s Ministry of Commerce has argued Canadian canola companies were dumping the product into the Chinese market, hurting its domestic canola oil market.
Ottawa and farmers have denied dumping, saying exporters are following rules-based trade.
This report by The Canadian Press was first published Sept. 5, 2025.
