China Launches Anti-Dumping Probe on Canadian Canola Amid Trade Tensions

China has announced an anti-dumping investigation into Canada's canola imports following Canada's recent tariffs on Chinese electric vehicles and steel. This move has impacted prices in both countries' commodity markets. China's canola market heavily relies on Canadian imports, which saw significant growth in 2023.

China said on Tuesday it plans to start an anti-dumping investigation into canola imports from Canada, in response to Ottawa's new tariffs on Chinese electric vehicles, steel, and aluminum.

This announcement has caused a surge in domestic rapeseed oil futures in China, hitting a one-month peak. More than half of the canola produced in Canada is exported to China, the world's biggest oilseed importer. The ongoing trade tensions are causing fluctuations in commodity markets for both countries.

China strongly opposes these Canadian measures and plans to take the matter to the World Trade Organization. Meanwhile, China may explore alternative suppliers like Australia for its canola needs if the dispute continues.

(With inputs from agencies.)