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

The US and China have extended their trade truce for another 90 days, just hours before the world's two biggest economies were set to raise tariffs on imports of each other's goods. On Monday, US President Donald Trump signed an executive order to keep the pause in place until 10 November, while Beijing also announced an extension.

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.