China to Investigate Canadian Canola Imports Amid Trade Dispute

China announced an anti-dumping investigation into Canadian canola imports following Canada's imposition of tariffs on Chinese electric vehicles. Canada's Farm Minister Lawrence MacAulay expressed concerns and the Canola Council of Canada defended its producers. Analysts warn that China may source canola from Australia due to trade tensions.

China has announced an anti-dumping investigation into canola imports from Canada, escalating trade tensions following Canada's decision to impose tariffs on Chinese electric vehicles. The move has caused domestic rapeseed oil futures to surge to a one-month high.

Canadian Farm Minister Lawrence MacAulay expressed deep concern over the investigation. Ottawa is closely monitoring the situation and intends to defend its farm sector robustly. The dispute extends beyond canola, including Chinese tariffs on Canadian steel, aluminum, and some chemical products.

Analysts believe China may turn to alternative sources like Australia due to the strained trade relationship. While Canada's canola exports to China have surged, China's domestic rapeseed industries have faced significant losses.

(With inputs from agencies.)