Canadian pea prices respond to tariff-reduction deal with China

The conclusion of an agreement between Canada and China to eliminate 100% of import duties on peas from March 1, 2026, has already had a positive impact on the market. Pulse Canada President Terry Yuzva said that he received an offer from a broker that was $0.50/bushel more expensive than before. “We have not yet reached the previous levels — a year ago the price of peas fluctuated in the range of $12-14/bushel, and now it is about $8/bushel,” he noted.

China has agreed to eliminate tariffs on Canadian peas and canola meal and significantly reduce tariffs on canola seed in exchange for certain concessions on imports of Chinese electric vehicles. The deal has eased the anxiety that has hung over the pea market since March 2025 and allowed producers to look to the future with optimism.

Experts expect further price increases after grain traders streamline all logistics processes. It is expected that the old crop of peas will be sold before the new crop in August-September, which will help farmers replenish working capital and cover expenses.

Pulse Canada also notes that rising prices for peas and canola could positively impact other crops competing for acreage in 2026. At the same time, farmers still have time to adjust planting plans in accordance with the new trade terms with China.

Over the past five years, Canadian pea exports to China have averaged 1.6 million tonnes per year, worth $743 million. The loss of the Chinese market and India’s 30% tariffs have pushed pea prices down by about 43%. However, the legume sector has not yet decided whether to follow the example of canola producers and seek financial compensation from the Canadian government. In the meantime, all market participants expect a “transparent, commercial and meaningful” trade relationship with China.