‘Quite a problem for us’: How China’s retaliatory tariffs could impact local farmers

Warren Ellis with the Manitoba Canola Growers Association discusses how Chinese tariffs could impact Manitoba farmers.

Manitoba farmers are left wondering how to proceed as they face China’s retaliatory tariffs on canola, pork and other food items.

CTV News previously reported that China is issuing 100 per cent tariffs on peas and canola oil, and 25 per cent tariffs on pork and aquatic products.

Warren Ellis with the Manitoba Canola Growers Association said these tariffs could be “devastating” to the thousands of canola farmers in the province.

He added the tariffs are putting pressure on canola prices at a particularly tough time, as farmers need to sell canola to pay for inputs for the upcoming spring.

“The tariff is on the oil and meal of canola, which makes up $1 billion of our $5 billion market to China,” he said in an interview with CTV Morning Live on Wednesday.

“Canola prices have basically dropped $2 a bushel, which is an incredible amount of money for farmers.”

Ellis said farmers are wondering how they should handle this situation and grappling with whether they should be planting canola at all this year.

“Farmers are incredible at handling a lot of adversity, but this is something we’ve never seen, so it’s quite a problem for us,” he said.

Ellis said farmers are looking to the federal government for compensation for their losses as China’s retaliatory tariffs are in response to Canadian duties levied against Chinese-made electric vehicles, as well as steel and aluminum products.

He added it would be very difficult for farmers to transition to a different type of crop at this point.

“Particularly for this time of year, where we’re 30 days from planting…Most of the inputs are already in place, and to make a big switch now is very difficult indeed,” he said.

China’s retaliatory tariffs are expected to begin on Thursday.

• With files from CTV’s Rachel Lagacé and The Canadian Press.