Canadian Grain Farmers Threatened by Trade War on Two Fronts with the U.S. and China
March 10, 2025 (Ottawa, ON) – Canadian grain farmers are facing a trade crisis on two fronts, with escalating tariffs from both the United States and China threatening billions in exports and putting the future of family farms at exceptional risk. The Chinese government’s decision to impose 100 percent tariffs on Canadian canola oil, canola meal, and peas comes as trade tensions with the U.S. continue to pressure Canada’s grain sector.
“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 GGC. “Together, the U.S. 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.”
Grain Growers of Canada (GGC) echo the concerns raised by the Canadian Canola Growers Association (CCGA), Canola Council of Canada (CCC), and Pulse Canada that farmers are facing mounting pressure which could cause a net loss for many.
In 2024, Canada exported 2 million metric tonnes of canola meal to China, valued at $918 million, and over 15,000 metric tonnes of canola oil, valued at over $20.5 million. The five-year average for yellow pea exports to China stands at over 1.5 million metric tonnes, valued at more than $740 million annually. Canada also exports over $17 billion worth of grain and grain products to the U.S. each year — a market increasingly threatened by shifting trade policies.
“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.”
The Chinese tariffs are a direct response to Canada’s recent decision to impose tariffs on Chinese electric vehicles, steel, and aluminum.
“Farmers are being treated as collateral damage in international trade disputes,” Larkin said. “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.”
GGC stands with CCGA, CCC, and Pulse Canada in urging the federal government to defend Canada’s agricultural sector and maintain access to key export markets.
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About Grain Growers of Canada (GGC):
As the national voice for Canada’s grain farmers, Grain Growers of Canada (GGC) represents over 70,000 producers through our 14 national, provincial and regional grower groups. Our members steward 110 million acres of land to grow food for Canadians and for 160 countries around the world, creating $45 billion in export value annually. As the farmer-driven association for the grains sector, GGC champions federal policies that support the competitiveness and profitability of grain growers across Canada.
For more information, please contact:
Grain Growers of Canada
514-834-8841 | media@graingrowers.ca
