On the heels of China’s anti-discrimination investigation, which concluded in March, Ottawa confirmed the punitive tariffs would also apply to select pork, fish and seafood products, with a 25% levy introduced on those goods. The move deals a significant blow to Canada’s agri-food sector and threatens billions in trade, particularly in canola and pork.
In response, Kody Blois, Minister of Agriculture and Agri-Food and Rural Economic Development, unveiled a package of enhanced supports through the AgriStability programme, designed to help producers weather volatile trade conditions and mounting global risks.
“These tariffs will have a devastating impact on farm families and their communities,” Blois said. “We’re responding to what the sector needs right now—real support, quickly delivered.”
Support package details
Under the updated AgriStability scheme for the 2025 programme year, Ottawa will:
- Increase the compensation rate from 80% to 90%;
- Double the payment cap to $6 million—the first change in over 20 years;
- Allow provinces and territories to offer interim payments of up to 75% of estimated final support, up from the current level;
- Enable targeted advance payments in sectors hit by specific trade or disease-related disruptions.
These changes are aimed at getting funds into producers’ hands faster and ensuring larger operations can access meaningful support, particularly in regions and sectors disproportionately affected by the tariffs or animal disease threats, such as African Swine Fever.
Sector under strain
Canola remains Canada’s second-largest acreage crop, covering over 21 million acres annually and generating $13.6 billion in farm cash receipts in 2023. China was a major buyer, with canola meal exports reaching $920.9 million in 2024 and peas totalling more than $300 million. Pork exports to China also approached $470 million last year.
The tariffs are expected to hit growers, harvesters, processors and exporters across the board—while also raising prices and limiting choice for Chinese buyers.
“The sector is already grappling with uncertainty in U.S. trade relations, global disease risks and now a major market disruption,” Blois said. “This support package reflects our commitment to stand with producers and defend Canadian agriculture at home and abroad.”
Looking ahead
The government is also encouraging producers to make use of a range of business risk management tools, including AgriInvest, AgriInsurance and the Advance Payments Program. Farm Credit Canada is stepping in with $1 billion in new lending under its Trade Disruption Customer Support programme to further ease financial pressure.
In the longer term, Canada continues to push for market diversification through initiatives like the AgriMarketing programme, which is currently accepting a second round of applications.
While Ottawa says it remains open to constructive dialogue with China, officials insist Canada will not compromise on its values, standards, or support for its agricultural sector.
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