Persistence Pays in Restoring Access to China

When China imposed a 100 per cent tariff on Canadian peas in March 2025, the impact was immediate. Movement slowed, bids weakened and one of Canada’s most important pea markets effectively closed overnight.

China had become one Canada’s most important pea customers. With India largely out of the market in recent years, China had taken the largest share of Canadian yellow peas from 2018-2023, supporting demand and positive returns across the Prairies. Losing that outlet created uncertainty and a massive decline in prices.

Rather than waiting for the situation to resolve itself, Pulse Canada staff moved quickly. Our priority was clear from the outset: reinforce Canada’s reputation as the preferred supplier, restore market access and get Canadian peas moving again.

Why the tariff mattered

The tariff was part of a broader trade dispute, introduced by China in response to Canada’s tariffs on Chinese electric vehicles, steel and aluminum. While peas were not the original focus, they were caught in the crossfire.

The commercial impact was significant. Over the previous five years, Canadian pea exports averaged more than 1.5 million tonnes annually, valued at over $700 million each year. When that demand disappeared, the effects were quickly felt. Pea prices plummeted, and other markets weren’t able to draw down supplies.

Staying engaged to restore access

From the outset, the tariff was treated as an issue that required engagement, not escalation. In March 2025, Pulse Canada President Greg Cherewyk described the tariffs as “an invitation to negotiate,” reflecting a constructive, solutions-focused approach.

That approach was possible because long-standing relationships were already in place. Throughout 2023 and 2024, Pulse Canada staff were very active in China, reinforcing Canada’s reputation as the preferred trading partner and positioning Canadian yellow peas as the preferred raw ingredient for Chinese processors.

When the tariff was imposed, that groundwork mattered. Pulse Canada staff were on the ground within 10 days of the announcement. Throughout 2025, Pulse Canada maintained an active in-market presence, meeting directly with buyers, processors and government officials, while also working closely with the Government of Canada to keep pulses front and centre in bilateral discussions. This work was coordinated with other affected agricultural sectors to reinforce the importance of restoring trade stability.

Market realities reinforced the case for Canada

By late 2025, the commercial reality in China was becoming clear. Inventories of Canadian peas were running down, and product from alternative origins was not meeting expectations. Costs were higher, quality was inconsistent, and the end product did not measure up to the standards that Canada had set.

Canadian peas remained the preferred option for Chinese fractionators and end users. This reinforced a critical point: reopening the market was not only a political objective, but a commercial necessity for Chinese buyers.

A result that delivers

In January 2026, following high-level discussions between Canadian and Chinese leaders, China announced it would remove the 100 per cent tariff on Canadian peas, effective March 1, 2026.

The decision reopened a market that accounted for nearly $4 billion in Canadian pea exports between 2019 and 2025. For processors and exporters, China’s back in business for yellow, green and maple peas and there’s an opportunity to move product now. For farmers, that restored demand means higher bids and a more stable outlook heading into the upcoming crop year.

What this means going forward

Reopening China strengthens the entire pricing structure for peas in Western Canada. Strong export demand supports farmer bids, restores throughput across the value chain, and gives growers greater confidence when making seeding and marketing decisions.

At the same time, the sector remains focused on diversification. Alongside restoring access to key markets like China, Pulse Canada continues to pursue growth opportunities in markets with large and growing middle-class populations. These demographics are driving increased demand for affordable, protein-rich foods and ingredients.

This includes expanding demand across a range of regions and supporting value-added processing in food, pet food and feed applications globally. Broadening the demand base helps reduce reliance on any single market while creating more stable, long-term opportunities for Canadian pulses.

This combination of market access and diversification strengthens resilience over the long term. By building demand across regions, demographics and end uses, the sector is better positioned to manage volatility and capture emerging opportunities as global food and feed markets evolve.

The work is not finished. With a commitment to keep tariffs off through the end of 2026, we turn our attention to securing permanent removal. Maintaining access will require continued contact and conversations with customers and governments to reduce the risk of future disruptions and ensure Canada remains a preferred supplier in an increasingly competitive global market.

For growers and the trade the takeaway is clear: persistence pays. By staying engaged with customers and governments, the Pulse Canada team helped reopen a critical market and strengthen long-term demand and price support for Canadian peas.