Canadian grain farmers caught in trade war crossfire with US, China

Canadian grain farmers are facing an unprecedented crisis as trade tensions rise with both the United States and China, threatening billions in exports and placing family farms in jeopardy. 

With new tariffs from China hitting canola and pulse crops hard, and ongoing uncertainty with the US, farmers say they are being unfairly caught in the middle of international trade disputes.

China recently announced a 100% tariff on Canadian canola oil, canola meal, and peas, seen as a retaliation for Canada’s decision to impose tariffs on Chinese electric vehicles, steel, and aluminum. 

Meanwhile, trade pressures with the US continue to provide uncertainty on Canada’s ability to maintain access to its largest grain export market.

“With uncertainty mounting with the United States, our largest export market, the last thing grain farmers needed was a trade war with China, our second largest export market,” said Kyle Larkin, Executive Director of Grain Growers of Canada (GGC). 

“Together, the US and China account for over half of all Canadian grain exports — losing access or facing exorbitant tariffs in both markets at once is a threat farmers cannot afford to absorb.”

The numbers illustrate the staggering economic impact at stake. 

In 2024 alone, Canada exported 2 million metric tonnes of canola meal to China, worth $918 million, along with more than 15,000 metric tonnes of canola oil, valued at over $20.5 million. 

The five year average for yellow pea exports to China sits at over 1.5 million metric tonnes, generating more than $740 million annually. 

On top of that, Canada ships more than $17 billion in grain and grain products to the US every year, which is a market now facing significant policy challenges due to President Donald Trump’s uncertainty about trade tariffs.

“These tariffs will push down the prices farmers receive for our crops, just as input costs and government regulations are already eating into our bottom line,” said Tara Sawyer, Chair of GGC. 

“When farmers see prices drop, it impacts every part of their operation — from how much they can invest in next year’s crop to their ability to support their families. We’re being forced to pay the price for political decisions beyond our control.”

Farmers and industry leaders argue that agriculture should not be used as leverage in international trade disputes. 

The GGC, along with the Canadian Canola Growers Association, Canola Council of Canada, and Pulse Canada, are urging the federal government to take immediate action.

“Farmers are being treated as collateral damage in international trade disputes,” said Larkin. 

“We’re calling on the government to take immediate action — first, to engage with China to find a resolution and, second, to establish a compensation plan to cover the financial losses farmers are facing.”

With both major export markets in jeopardy, Canadian grain farmers warn that swift government action is needed to prevent severe financial fallout across the agricultural sector.