The levy would be a blow for Canada’s agricultural sector, as canola represents the biggest cash crop for farmers.

China’s Ministry of Commerce announced on Tuesday that a preliminary 75.8 per cent duty on Canadian canola seed would go into effect on Thursday, sending canola futures on the Intercontinental Exchange down as much as 6.5 per cent.

China on Tuesday announced a preliminary anti-dumping duty on Canadian canola imports — a fresh escalation in a yearlong trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August.