Edmonton, Alberta/Winnipeg, Manitoba (Rural Roots Canada) – Canada’s canola industry and pulse growers are welcoming the news of a new trade deal with China that sees tariffs significantly reduced on canola products and peas.
Under the agreement-in-principle, China will lower tariffs on Canadian canola seed to about 15% by March, down from current levels near 85%. Canada also expects that canola meal and peas will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of the year. There was no mention of canola oil.
“This is positive news heading into seeding,” said Andre Harpe, Chair of Alberta Canola. “Reducing the tariffs on seed and eliminating them on meal will get trade flowing again.”
The Canola Council of Canada (CCC) and the Canadian Canola Growers Association (CCGA) also welcomed the news, calling it an important milestone in Canada’s relationship with China.
“The Canadian canola industry has been clear since the outset that these tariffs are a political issue requiring a political solution,” says Chris Davison, CCC President & CEO. “We are pleased to see significant progress in restoring market access for seed and meal and will continue to build on this development by working to achieve permanent and complete tariff relief, including for canola oil, moving forward.”
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Rick White, President and CEO at CCGA, say this agreement comes at the right time to restore confidence in the canola sector.
“With most of the 2025 canola crop stored on farm, and planting of the 2026 crop only months away, canola farmers are looking for predictability and confidence in the ability to market their canola,” says White. “We are pleased to see this significant progress and will be looking for the resumption of canola movement in the future.”
Pulse Canada is also welcoming the announcement that China will remove the 100% tariff on Canadian peas, saying the decision restores access to one of Canada’s most important pulse export markets and provides long-overdue certainty for growers, exporters, and processors across the country.
“Since day one, Pulse Canada has worked with government and our customers to remove this tariff and restore access and predictability to the marketplace,” says Terry Youzwa, Chair of Pulse Canada. “This announcement reinforces the importance of constructive, proactive engagement between trading partners, and we look forward to working together to ensure this removal is permanent.”
“This outcome demonstrates what focused, persistent, high-level engagement can achieve,” said Greg Cherewyk, President of Pulse Canada. “Re-establishing access to China provides immediate commercial opportunities while strengthening Canada’s position as a trusted supplier of high-quality, nutritious, and sustainable food ingredients.”
In March 2025, China slapped retaliatory tariffs on Canadian canola and other agricultural products in response to trade restrictions imposed by Canada in 2024. The tariffs were in response to Canada’s decision to impose duties on Chinese-made electric vehicles, steel, and aluminum products. The retaliatory tariffs included a 100% duty on Canadian canola oil, canola meal, and peas. In August 2025, China announced a preliminary anti-dumping duty of 75.8% on canola seed.
Canadian exports of canola and canola products to China were valued at approximately $5 billion in 2024. For 2025, export value to China is expected to plummet to less than half that amount. China is Canada’s largest market for canola seed and the second largest market for canola meal. From 2019-2024, Canada exported roughly $3.7-billion worth of peas to China.
