Agribusiness and food tariff update: Recent developments in China, India and the United States

Canadian agricultural exporters have faced a rapidly evolving trade environment over the past several months. Three of Canada’s most significant trading partners – China, India and the United States – have each taken steps that materially affect tariff exposure, market access and commercial risk for Canadian agriculture producers and exporters. This insight is intended to operate as an update to a previous Insight which explained the state of tariffs on Canadian agriculture products as of November 26, 2025.

China: Partial tariff relief, but continued uncertainty

In March 2025, China imposed significant retaliatory “anti-discrimination” tariffs on a range of Canadian agricultural products. These measures included 100% tariffs on canola oil, canola meal and peas, as well as a 25% tariff on pork and certain seafood.

Since our previous Insight, the most consequential development has been China’s decision to partially roll back the foregoing tariffs effective March 1, 2026, following high-level negotiations between the Government of China and the Government of Canada.

Specifically, China has:

• Suspended tariffs until December 31, 2026, on canola meal, peas, lobster and crab
• Reduced tariffs on Canadian canola seed to a combined applied rate of approximately 15%, down from a prior combined rate of approximately 84%.

These changes materially improve short-term access for Canadian producers to Chinese markets, particularly for canola exporters from the Canadian prairies. However, this relief is time-limited and these tariff suspensions may be revisited in 2027.

In addition, certain high-impact tariffs on Canadian agricultural products entering China which have not been lifted include:

• 100% tariff on canola oil
• 25% tariff on pork

India: Reinstated tariffs on Canadian pulses

India has also maintained its tariff position on Canadian agricultural products since late 2025, most notably affecting the pea export sector in Canada. In late 2025, India reinstated a 30% tariff on Canadian yellow peas entering India, reversing earlier temporary relief that had allowed tariff-free or reduced-tariff access for Canadian yellow pea exports.

The reinstated tariff reflects India’s ongoing use of trade measures to manage domestic supply and price stability, rather than a bilateral trade dispute. Nonetheless, the result of the tariff is increased costs and renewed pressure on Canadian yellow pea exporters seeking to supply India consumers.

While India periodically suspends or relaxes tariffs in response to domestic market conditions, Canadian exporters should assume that pea-related tariffs will fluctuate and remain policy-driven in the near future.

United States: Tariff exposure persists despite CUSMA protections

For Canadian agricultural exporters, the United States remains both Canada’s largest trading partner and a key source of trade risk. While many Canadian agricultural products benefit from tariff-free treatment under the Canada-U.S.-Mexico Agreement (CUSMA), recent developments underscore that U.S. tariff exposure cannot be wholly discounted.

U.S. trade policy since late 2025 has continued to emphasize national security, supply chain resilience and domestic industry protection, particularly through the use of tariff authorities outside traditional free trade agreements. Although Canada has thus far been relatively insulated compared to other trading partners, U.S. actions targeted at broader agricultural or industrial sectors can still have indirect effects on Canadian agriculture exporters in integrated North American supply chains. For greater details on recent U.S. tariff developments, please see our previous insight: U.S. Supreme Court strikes down emergency tariffs: What Learning Resources, Inc. v. Trump means for Canada.

New Saskatchewan development: $15.6 million workforce tariff-response funding

In March 2026, the Government of Canada and Government of Saskatchewan jointly announced $15.6 million in funding over three years for the Canada-Saskatchewan Workforce Tariff Response. This program is designed to support workers and employers affected by tariffs through retraining, upskilling and employment assistance, delivered primarily through SaskJobs and provincial training partners. Official releases describe the initiative as targeting workers in steel and softwood lumber sectors, as well as other industries directly or indirectly affected by tariffs, with an anticipated reach of up to approximately 1,800 workers in Saskatchewan. This funding is characterized as an extension of existing employment programming in Saskatchewan, intended to support employers facing employment sustainability pressures arising from shrinking demand by enabling workers to retrain and develop new skill sets.

For agricultural exporters, the significance of this initiative lies less in tariff relief and more in workforce resilience during tariff-driven disruptions. Where exposure to China, India or U.S. trade measures results in reduced production volumes, deferred expansion or temporary operational adjustments, access to training and employment supports may help stabilize labour availability and mitigate short to medium-term costs. Businesses should consider mapping tariff-exposed segments of their operations, assessing whether Employment Insurance Work-Sharing and related upskilling options may apply, and engaging SaskJobs or training partners where workforce adjustments are foreseeable.

At the same time, exporters should continue to rely on the following risk-management strategies for managing evolving tariff volatility:

• Monitoring tariff changes regularly – Staying informed about evolving trade measures in key markets such as China, India and the U.S.
• Diversifying export markets – Reducing reliance on high-risk jurisdictions by exploring alternative markets. Overconcentration in countries such as China, India and the U.S. increases vulnerabilities to policy shifts.
• Reviewing and updating contracts – Including tariff-related risk mitigation clauses in supply agreements to allocate risk and address potential cost increases and considering renegotiation provisions, such as force majeure clauses, to reflect possible trade disruptions.
• Understanding quota and compliance rules – Ensuring shipments of supply-managed products (e.g. dairy, poultry, eggs) remain within tariff-rate quotas and meet CUSMA rules of origin to avoid unexpected tariffs.

Canadian agriculture exporters should continue to monitor the international tariff situation closely and assess contractual, pricing and supply-chain exposure accordingly. Organizations should consult the MLT Aikins Agribusiness and Food or Regulatory Compliance teams at to assess how tariff developments affect their operations and to determine the most effective path forward.

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