Canadian exports to China jumped 30 per cent during the first half of 2026 as Ottawa strengthened economic ties with Beijing and sought to reduce its dependence on the United States amid an escalating trade dispute with Washington.
Statistics Canada data analyzed by the Canada China Business Council and the University of Alberta’s China Institute showed total goods trade between Canada and China reached $66.6 billion during the first six months of the year, an increase of 3.6 per cent from the same period in 2025. Canadian exports climbed to $21.74 billion, marking what the Canada China Business Council described as a record for first-half exports to China.
Energy and mineral products drove much of the increase, accounting for 58.4 per cent of Canadian domestic exports to China. Energy exports, led largely by crude oil and liquefied propane, surged 81.8 per cent, while exports of metal ores and non-metallic minerals, including copper ore, increased 29 per cent. The Trans Mountain Pipeline reaching 97 per cent capacity in June has helped provide Asian buyers with greater access to Western Canadian crude.
The increase comes as Canada and China rebuild economic and diplomatic relations following years of tension. At the same time, Prime Minister Mark Carney’s government has been seeking new international markets as Canada’s trade relationship with the United States deteriorates. Ottawa has repeatedly emphasized the need to diversify Canadian trade and reduce the country’s longstanding reliance on the U.S. market.
Global energy developments have also contributed to the shift. Disruptions to shipments through the Strait of Hormuz amid the U.S.-Israeli conflict with Iran have pushed oil prices higher and encouraged some international customers to seek alternative suppliers, including Canada. Trans Mountain CEO Mark Maki has projected that Asian markets could account for 70 per cent of Canadian oil exports by 2028.
Canada-China trade relations also improved following an agreement between Carney and Chinese President Xi Jinping. Under the arrangement, Canada permitted tens of thousands of Chinese electric vehicles to enter the domestic market, while Beijing suspended some tariffs on Canadian agricultural products, including canola meal and peas, and reduced duties on canola seed. Canadian canola producers have since seen prices recover, with some farmers reporting an increase from about $12 to $17 per bushel.
Alberta and British Columbia recorded the largest gains in exports to China, supported by shipments of energy, minerals, forestry products and agricultural goods. The Port of Vancouver, which handles roughly 16 per cent of Canada’s merchandise trade, is also seeing growing China-related activity, with about one-third of its trade currently involving the country.
While Canadian exports rose sharply, imports from China declined 5.8 per cent year-over-year during the first half of 2026. The decline helped reduce Canada’s trade deficit with China by 25 per cent. Researchers said part of the shift could reflect manufacturers moving some production from China to countries such as Vietnam. Ontario recorded the largest decline in imports, particularly in portable computers and video game consoles, although imports of lithium-ion batteries and electric vehicles increased.
Agricultural exports posted more modest growth of 1.9 per cent. Shipments of canola seed, peas and beef increased, while Canadian lobster exports to China fell 28 per cent. Researchers cautioned that the overall improvement in exports remains concentrated in a relatively small number of commodities rather than representing broad-based growth across Canadian industries.
Canadian producers are also emphasizing the importance of diversifying within Canada and across multiple international markets rather than replacing dependence on the United States with reliance on China. The current suspension and reduction of some Chinese agricultural tariffs is scheduled to last only until the end of 2026, adding uncertainty to the longer-term outlook.
Despite those risks, the Canada China Business Council said the first-half figures indicate Canada is making progress toward Ottawa’s goal of increasing exports to China by 50 per cent by 2030. The Asia-Pacific region is expected to remain an increasingly important market as Canada attempts to strengthen and diversify its international trade relationships.
