Canada Reduces Canola Exports to China Due to High Tariffs but Increases Meal Sales to the US and EU

In the first four months of the 2025/26 marketing year, Canada exported only 200,000 tons of canola to China. This is a significant decrease compared to the same period last year, when shipments reached 2.6 million tons. The reason for this decline is the extraordinarily high import tariffs imposed by China.

This is reported by AgroReview

Canola Harvest in Canada Reaches Historic High

This season, Canada has harvested a record canola crop of 21.8 million tons, significantly exceeding last year’s figure of 17 million tons. Traditionally, China has been a key importer of Canadian canola, purchasing 6–7 million tons annually. Due to the export restrictions to China, Canadian producers are faced with the pressing issue of finding new markets.

“It is expected that following the recent agreement for significant reductions and partial cancellations of trade tariffs starting March 1, 2026, trade between the two countries will resume.”

Increase in Meal and Soy Exports to Alternative Markets

The demand for Canadian canola meal has significantly increased outside of China, particularly in the US. Thanks to discounts from processors, canola meal shipments to the US from August to November 2025 reached a record 1.42 million tons, surpassing last year’s figure of 1.29 million tons.

Additionally, Canada is actively increasing its export of canola meal to European Union countries, the United Kingdom, Vietnam, Thailand, and South Korea. In the first four months of the current season, shipments to the EU rose by 0.4 million tons, partially offsetting the 0.7 million ton decrease in exports to China.

At the same time, China remains a key market for other Canadian agricultural products. In particular, Canadian soybean exports to China from August to November 2025 reached a record 1 million tons, which is 48% more than last year and accounts for 36% of total exports (compared to 26% in 2024).