Canadian Canola Meal stuck in China amid tariff dispute
Importers are struggling to resell up to 400,000 metric tons of Canadian canola meal stuck in Chinese warehouses after Beijing imposed steep import tariffs, three trade sources told Reuters. The protein-rich feed ingredient faces a 100% duty if released for domestic sale, making local sales financially unviable.
Traders are exploring options to sell the cargo to other Asian markets, such as Southeast Asia or South Korea, but at roughly a 30% discount. The situation highlights the impact of ongoing trade tensions between Washington and Beijing on agricultural commodities, News.Az reports, citing Reuters.
China recently escalated the dispute by announcing a preliminary anti-dumping levy of 75.8% on Canadian canola oilseed and previously imposed 100% tariffs on rapeseed oil, oil cakes, and peas. The stranded cargoes, valued at around $120 million, underscore the challenges faced by agricultural exporters caught in tariff conflicts.
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