Canadian pea prices respond to China tariff deal

Canada’s agreement with China to eliminate the 100% import tariff on peas, effective March 1, 2026, is already having a positive impact on the market. Terry Youzwa, chair of Pulse Canada, noted that he received a broker bid $0.50 per bushel higher than before. “We still have a way to go — a year ago, peas were $12–14 per bushel, now it’s around $8,” he said.

Under the deal, China will also eliminate tariffs on canola meal and significantly reduce tariffs on canola seed in exchange for concessions on imports of Chinese electric vehicles. Youzwa said the agreement lifted the gloom that had hung over the pea market since March 2025 and has given producers reason to look ahead with optimism.

Further price increases are expected as grain handlers finalize logistics. There should be enough time to move old crop peas before the new harvest arrives in August–September, helping farmers replenish working capital and cover expenses.

Pulse Canada also noted that higher prices for peas and canola could have a positive effect on other crops competing for acreage in 2026. Farmers still have time to adjust their seeding plans to reflect the new realities of trade with China.

Over the past five years, Canada exported an average of 1.6 million tonnes of peas to China annually, valued at $743 million. Loss of the Chinese market and 30% tariffs in India have caused prices to drop about 43%. The pulse sector has not yet decided whether to follow canola growers in seeking financial compensation from the Canadian government, but all market participants are looking forward to a “transparent, commercial and meaningful” trade relationship with China.

Tags: China, prices, Canada, duties, pea