As part of ensuring greater clarity for commodity markets and the larger agricultural industry, it was announced on February 28th, 2026, that a 5-year agreement had been reached between Canada and China regarding China’s import of canola seed only. This agreement lowers the tariff on Canadian canola imports to 14.9%.
At the end of June 2026, China announced new tariffs on the import of Canadian pea starch. Effective on July 1st, 2026, a tariff of 73.5% is being applied. In 2025, the value of pea starch exports to China were worth $14 million. While a relatively small portion of the overall agricultural exports from Canada to China, it represents the significant work ahead for the Canadian government to ensure that tariffs do not return to 100% on January 1st, 2027.
Negotiations between Canada and China on other commodity tariffs have not produced any beneficial results since the January 2026 announcement. China still applies a 25% tariff to pork imports. The January agreement removed the 25% tariff on Canadian seafood exports, but only until the end of the 2026 calendar year.
