CALGARY — Canada's canola industry could take a $1-billion hit in the wake of Chinese trade actions, according to a new report from an international credit rating agency.
"While there is no certainty on when China will levy tariffs, how meaningful they could be, and for how long they would remain in place, the tariffs could have a meaningful impact," the report stated, warning both global canola trade flows and Canadian grain handling companies could be affected. The move to target canola came days after Canada announced a plan to impose tariffs on Chinese-made electric vehicles, steel and aluminum.
Industry estimates peg the cost to the Canadian canola sector of that action at $1.5 billion to $2.4 billion between 2019 and 2020.
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