The federal government’s “Canada Strong” slogan is being questioned as farm leaders, premiers, and industry groups call for urgent support in the face of crippling Chinese tariffs. On Aug. 12, 2025, Beijing imposed a preliminary anti-dumping duty of 75.8 per cent on Canadian canola seed, effectively shutting off a key export market. This followed earlier tariffs of 100 per cent on Canadian canola oil and meal, along with peas, and 25 per cent on seafood and pork, effective March 20, 2025.

The Chinese tariffs were introduced in response to Canada’s tariffs on Chinese electric vehicles, steel, and aluminum, which took effect in October 2024. China has long been a major customer for Canadian agriculture, ranking as Canada’s second-largest agri-food market in 2024, valued at $2.4 billion, with canola, peas and pork accounting for $1.7 billion.

China is Alberta’s second-largest agricultural export market, valued at $2.4 billion last year, with nearly 70 per cent of the province’s canola seed exports shipped there, officials noted.  Alberta Premier Danielle Smith is calling for swift federal action to resolve the dispute and reopen the Chinese market, warning that the livelihoods of farmers, ranchers and processors are at risk. Alberta has vowed to continue advocating for its producers and urged Ottawa to take similar action.

Saskatchewan Premier Scott Moe said Canada’s $43-billion canola industry — supporting more than 200,000 jobs — should not be sidelined to protect a “fledgling” electric vehicle sector concentrated in Eastern Canada. Manitoba Premier Wab Kinew estimated the tariffs cost Western Canada $1 billion on the first day and said farmers would bear the brunt at harvest.

Canola vs. Lumber

The federal response to trade disruptions has varied sharply by sector. In 2023, Ottawa allocated $1.2 billion to help the softwood lumber industry manage long-standing U.S. tariffs, including measures for worker transition and market diversification. In contrast, when canola — Canada’s largest crop by value — was hit with tariffs more than triple those faced by lumber, no comparable assistance was announced. Industry leaders argue this demonstrates a policy imbalance, with Central and Eastern Canadian industries receiving quicker and more substantial support than those in the West.

Federal Agriculture Minister Heath MacDonald and International Trade Minister Maninder Sidhu met with canola representatives on Aug. 13. While they acknowledged the hardship and signalled openness to dialogue, farm groups warn that without direct support, the damage could be long-lasting.  

Auto Industry Lift

Meanwhile, the automotive sector has received significant backing from Ottawa. On Jan. 28, 2025, the Strategic Innovation Fund invested up to $169.4 million in Linamar Corporation’s $1-billion electric vehicle component project. A $2-billion Strategic Response Fund was also established to protect the auto industry from U.S. tariffs. The Incentives for Zero-Emission Vehicles (iZEV) program offered up to $5,000 per eligible purchase and supported 546,000 transactions before funding was exhausted in early 2025. Federal investments also supported the EV supply chain, including companies such as Marwood Inc. and Remmen Brakes.

Provincial Divide

EV adoption has varied widely across provinces, largely reflecting the availability of incentives. In 2024, zero-emission vehicles accounted for 14.6 per cent of new registrations nationwide, rising to 18.3 per cent in the final quarter. Quebec led the country, representing more than half of total ZEV sales and reaching a 30 per cent market share, aided by provincial rebates of up to $7,000 on top of the federal $5,000 incentive. British Columbia followed, with more than 20 per cent of new registrations being ZEVs, supported by provincial rebates up to $4,000.

Provinces without additional incentives — Ontario, Alberta, Saskatchewan, and Manitoba — have seen far lower adoption. National ZEV share fell to 8.7 per cent in the first quarter of 2025, driven in part by Quebec’s suspension of its rebate program, highlighting the sensitivity of EV uptake to financial incentives.

Subsidy Sustainability

The federal iZEV program and provincial rebates clearly increased EV adoption in supported markets. However, the 54 per cent drop in ZEV registrations in early 2025 after subsidies ended shows adoption remains highly dependent on funding. This raises questions about the long-term sustainability of the subsidy model and its regional fairness.

AgriStability Update

Ottawa is considering temporarily doubling the AgriStability payment cap to $6 million, a figure unchanged for more than 20 years. The adjustment would allow more producers to receive support aligned with the size of their operations, providing more meaningful relief for large-scale farms. AgriStability is cost-shared between federal and provincial or territorial governments, with Ottawa contributing 60 per cent and provinces or territories covering 40 per cent.

The proposed increase to the AgriStability payment cap underscores the discrepancy in federal support across sectors. While the EV and automotive industries have benefited from billions in targeted funding and incentives, agricultural producers facing severe trade retaliation from China have received comparatively limited aid. Observers say the uneven approach raises questions about policy priorities and the effectiveness of Canada’s broader trade and economic strategy.