Market Updates

Canada–China trade breakthrough/
pea tariffs lifted after Beijing talks bear fruit


Luke Wilkinson

Head Writer

At a glance


  • China will fully remove its 100% import tariff on Canadian peas as of March 1, 2026, following high-level talks between Beijing and Ottawa.
  • Pea prices in Canada have already begun to respond, with early price improvements reported by industry leaders despite remaining well below last year’s levels.
  • A return to normal trade is possible—but far from guaranteed, as Canadian peas face stiff competition from lower-priced Russian supplies and alternative origins.

Yellow peas are at the center of the Canada–China trade breakthrough, with Beijing agreeing to fully remove a 100% import tariff on Canadian peas as of March 1, 2026.

In a key update to last week's report on Canada's diplomatic trip to Beijing, an agreement has been reached for the removal of Chinese imports on Canadian peas, following a meeting between the Chinese President, Xi Jinping and Canadian Prime Minister, Mark Carney on Friday. Carney has referred to the landmark agreement between the two countries as a "new partnership” and a “new era."

China has agreed to completely remove the 100% import duty on Canadian peas and canola meal as of March 1, 2026. The Chinese government has made the agreement in exchange for significant concessions on Canadian import duties on Chinese electric vehicles (EV), which were set at 100% before the meeting. The tariff will be reduced to 6.1% on up to 49,000 vehicles, with plans for a gradual increase on the quota.

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The removal of Chinese tariffs is expected to support a resumption of Canadian pea shipments into China, although competition from lower-priced Russian peas is likely to remain strong.

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