April 5, 2025
Recent tariff changes by big industry players are reshaping global trade flows and pricing for peas, lentils, and chickpeas. Gaurav Jain of AgPulse Analytica recaps the rapidly evolving landscape.
As of April 2, the United States administration announced a reciprocal tariff policy aimed at rebalancing global trade flows. Imports from dozens of countries will face hefty tariffs, when entering the USA. Though the impact on manufacturing is great, agriculture has also not been spared.
Last year, the USA imported over half a million metric tonnes of pulses from multiple countries. The primary product was beans, while peas, lentils and chickpeas came next. Canada and Mexico remain the top supplier of pulses to the USA, but a variety of products come from countries like Nicaragua, India, Russia, Argentina and even China.
Retaliation
The affected countries (dozens of them) will not accept the US tariff without a protest. These countries will try to negotiate with the Trump Administration for favourable treatment and reduction of tariffs. To achieve this, we may see some nations impose their own tariffs on U.S. goods or forge alliances to promote trade amongst themselves.
In a significant development, the Chinese government announced the imposition of tariffs on agricultural goods from the USA and Canada, including peas.
USA
Effective March 10, 2025, a 10% import duty will be levied on U.S. agricultural goods, including peas. According to Chinese Customs data, the U.S. supplied a relatively small quantity of peas to China, with imports totalling just 51 thousand metric tonnes (KMT) in 2024. This represents a tiny fraction of China's total pea imports, which stood at 1.39 million metric tonnes (MMT) for the same time period.
Canada
In a more dramatic move, the Chinese government announced on March 8, 2025, that it will implement a 100% tariff on a range of Canadian agricultural products, including peas, starting March 20, 2025. This substantial tariff is expected to have a profound impact on Canada's pea export industry. Statistics Canada data reveals that 507 KMT of Canadian peas were exported to China in 2024, making China the second-largest importer of Canadian peas. However, this represents a decline from 2023, when exports to China totalled 1.565 MMT.
Impact on the pea industry
Chinese buyers have traditionally preferred Canadian and U.S. peas for their quality, particularly for use in fractionation, snack foods, bakeries, food service, and pet food. However, the newly imposed tariff is set to weaken Canada's competitiveness in this market, potentially prompting China to source its pea imports from alternative suppliers. The tariff is likely to have significant repercussions, and the country may need to explore new markets or strategies to maintain its market share.
The Government of India has introduced a 10% import tariff on lentils, effective March 7, 2025, replacing a previous duty-free import policy that was set to expire on March 31, 2025.
In a separate move, the Government of India announced a 10% import duty on desi chickpeas, effective from April 1, 2025. With this year's chickpea production expected to surpass last year's, the government hopes to support domestic farmers by preventing a potential drop in prices.
The gram (chickpea) harvest is underway in several states, with prices ranging from Rs 5,450-5,550 per quintal (100 kg), which is below the minimum support price (MSP) of Rs 5,650 per quintal set by the central government.
As a result of the policy change, the import of desi chickpeas from Australia to India has been severely affected, resulting in minimal trade activity. Australian traders are now shifting their focus to Bangladesh, UAE, and Pakistan.
Firstly, the country will continue to accept shipments of yellow peas until May 31, 2025 (B/L Date), providing exporters with an extended window of opportunity to supply this commodity.
Additionally, India has extended its duty-free import policy for black matpe (urad) and pigeon peas (tur) for another year. This policy, which now runs until March 31, 2026, allows traders to import these pulses from any origin without incurring duties, effective until the specified date.
Recent global policy reforms have impacted the trade of agricultural goods, particularly peas, lentils, and chickpeas. U.S. tariffs on imports from the rest of the world, China's imposition of tariffs on U.S. and Canadian agricultural products, and India's introduction of import tariffs on lentils and desi chickpeas, are expected to alter global trade dynamics and prices.
Looking for the latest on import duties, quotas, and trade rules? Explore our regularly updated overview of tariffs shaping the global pulse trade.
Disclaimer: The opinions or views expressed in this publication are those of the authors or quoted persons. They do not purport to reflect the opinions or views of the Global Pulse Confederation or its members.
