Canada: Pulse sector hopes for quick tariff resolution

Greg Cherewyk says there is still time to avert China’s proposed tariffs on a variety of agricultural goods.

The president of Pulse Canada said it is important to note that China selected March 20 as the implementation date for its 100 per cent tariff on Canadian peas, canola oil and canola meal and 25 per cent tariff on pork and seafood.

“I think they had an understanding that they’d be dealing with a new leader at that point, and I think that represents an opportunity,” he said.

He is referring to the recent election of Mark Carney as the new leader of the Liberal Party of Canada, replacing outgoing prime minister Justin Trudeau.

Cherewyk is hopeful that is the impetus needed to get China back to the bargaining table.

“It’s rare that you get these opportunities to reset a relationship a bit, and that’s what we’re looking at here is an opportunity,” he said.

“We think this is an invitation to negotiate. I truly believe that.”

Pulse Canada was one of the farm groups that warned the federal government in the fall of 2024 that its 100 per cent tariff on Chinese electric vehicles and 25 per cent tariff on steel and aluminum products could result in retaliatory tariffs against Canada’s agricultural products.

“We were worried about this and now it’s a reality,” said Cherewyk.

The Canadian Pork Council was contacted for this story but did not respond in time to meet the Western Producer’s production deadlines.

Rick White, president of the Canadian Canola Growers Association, wants Ottawa to get ready to start writing cheques to affected farmers.

“The impact of the federal government’s trade policy decisions is now playing out at the farmgate, making it imperative that government respond with a plan for financial compensation commensurate with the losses incurred,” he said in a press release.

China is the second biggest market for Canadian canola with exports of seed, oil and meal valued at $4.9 billion in 2024.

It is also a massive market for Canadian peas, importing an average of 1.5 million tonnes a year over the past five years, worth $800 million to $1 billion per year in annual sales.

Last year was a bit of an anomaly with sales dropping to 500,000 tonnes due to a massive buildup in supplies in 2023 and new competition from Russia.

“There was a time when we were the only game in town, and that would have completely safeguarded us from these types of things,” said Cherewyk.

He has already been on the phone with folks in Ottawa explaining how critical the Chinese market is and beseeching them to find a negotiated solution before the retaliatory tariffs are implemented.

Cherewyk said there are vessels enroute to China, others being loaded at port position and letters of credit that have been issued.

“We need to figure out how we’re going to manage all of that,” he said.

If China follows through with the proposed tariffs, it would bring a grinding halt to all Canadian pea trade with that country.

Some of those sales would have to be rerouted to a market such as India, which was closed to pea imports for six or seven years until the government dropped its pea duties in December 2023 due to a pulse shortage.

That temporary duty exemption was recently extended by three months to May 31, 2025.

India rapidly became Canada’s top market for peas in 2024.

Cherewyk hopes India recognizes the critical role peas play in providing an affordable source of pulse protein for citizens living below the poverty line.

He also hopes China realizes Canada is the preferred supplier of the crop due to quality and supply chain advantages.

He noted that it would be bad business for China to block the largest supplier to an important sector of its economy.

“I think we have some things working in our favour,” said Cherewyk.

Tags: Market, canola meal, peas, China, canola, Canada, canola oil