China to Investigate Canadian Canola Imports Amid Trade Dispute

China plans to launch an anti-dumping investigation into Canadian canola imports after Canada imposed tariffs on Chinese electric vehicles. The move has resulted in a surge in domestic rapeseed oil prices. The trade tensions have led to increased scrutiny of bilateral trade practices, particularly concerning canola and steel imports.

China announced plans on Tuesday to initiate an anti-dumping investigation into Canadian canola imports. This decision follows Canada's recent imposition of 100% tariffs on Chinese electric vehicles, a move that has sent domestic rapeseed oil futures soaring to a one-month high.

In response to Canada's tariffs, which also include a 25% tariff on steel and aluminum from China, a spokesperson from China's commerce ministry expressed strong opposition, describing the measures as discriminatory and unilateral. The spokesperson added that the ministry would also investigate Canadian chemical products for anti-dumping violations.

The trade dispute has significant implications as more than half of Canada's canola exports are destined for China. Following the announcement, prices for China's rapeseed meal futures rose sharply while Canada's ICE canola contracts for November fell nearly 5%. China, reliant on Canadian canola imports, is contemplating alternative suppliers such as Australia and Ukraine.

(With inputs from agencies.)