Canada boosts exports to China amid trade war with U.S.

Canadian merchandise exports to China in the first half of 2026 grew by 30.1% year-on-year, reaching 21.74 billion Canadian dollars. The increase comes amid heightened trade conflict between Canada and the United States, and Ottawa's efforts to reduce dependence on the American market.

This is according to data analyzed by the Canada China Business Council and the China Institute at the University of Alberta.

At the same time, Canada's imports from China in the first six months of the year fell by 5.8% to 44.86 billion Canadian dollars. Thus, bilateral trade changes are primarily driven by stronger promotion of Canadian goods into the Chinese market.

Energy resources and raw materials were among the main export drivers. Already in the first quarter, shipments of Canadian energy products to China grew by more than two-thirds year-on-year, while exports of metal ores and non-metallic minerals increased by about 60%.

Deliveries are also helped by increased access for Canadian oil to Pacific ports after the startup of the expanded Trans Mountain pipeline. China has become one of the main buyers of additional Canadian oil volumes that can now be exported to Asia without using American infrastructure.

Moreover, in early 2026, Ottawa and Beijing relaxed some of their mutual trade restrictions. China sharply cut tariffs on Canadian canola seed and temporarily removed additional tariffs on canola meal, peas, lobsters and crabs. Canada, for its part, eased restrictions on imports of Chinese electric vehicles and some metal products.

The government of Mark Carney sees China as a key diversification market. Ottawa has set a goal of increasing Canadian exports to China by 50% by 2030, and in the longer term of substantially boosting shipments to all markets outside the US.

This strategy has become more urgent after new escalation with Washington. Trade talks between Canada and the US failed, followed by new mutual restrictions and tariffs. Despite this, the US remains by far Canada's largest trading partner, so replacing the American market quickly with other destinations will not be possible for Ottawa.

Source: CBC, Canada China Business Council, Government of Canada