Canadian exports to China surged by 30% in the first half of 2026, as per data from Statistics Canada analyzed by researchers. The overall trade between the two countries increased by 3.6% year over year during the same period, reflecting a re-engagement between Canada and China. This uptick comes as Canada aims to diversify its economy due to strained relations with the U.S.
Trade in consumer goods between Canada and China reached $66.6 billion in the first half of 2026, a 3.6% increase, with exports soaring by 30% to $21.74 billion annually. The export sector was dominated by energy and minerals, accounting for 58.4% of all domestic exports to China. Energy exports, mainly crude oil and liquified propane, grew by 81.8%, while metal ores and non-metallic mineral exports, including copper ore, rose by 29%.
The warming relations between Canada and China following tensions over the arrest of Huawei executive Meng Wanzhou in 2018 have contributed to the recent trade upsurge. As Canada seeks new trade partners amidst escalating tensions with the U.S., Prime Minister Mark Carney emphasized the country’s intent to strike new trade agreements and reduce reliance on the U.S.
The Trans Mountain Pipeline reaching 97% capacity in June has significantly boosted Asia’s access to Western Canadian crude oil. Disruptions in oil shipments due to the U.S.-Israeli conflict with Iran have also prompted customers to turn to Canadian producers, driving up oil exports.
A trade deal between Carney and Chinese President Xi Jinping allowed for the entry of thousands of Chinese electric vehicles into the Canadian market in exchange for tariff concessions on Canadian agricultural products. This agreement has positively impacted the agricultural sector, with canola prices rebounding from tariff-related lows.
Despite the overall increase in trade, imports from China decreased by 5.8% year over year in the first half of 2026. The shift of certain manufacturing activities outside of China, particularly to countries like Vietnam, has contributed to this decline. The report authors highlight modest improvements in the agricultural sector, with notable rises in canola seed, pea, and beef exports.
Farmers are aiming to diversify their markets and reduce reliance on a single trading partner, particularly with the temporary nature of the tariff concessions from China. While Canadian exports to China are still below those to the United Kingdom and European Union, there is potential for growth in engagement with the Asia-Pacific region, including significant market opportunities in China.
The outlook for the remainder of the year indicates Canada is on track to achieve its goal of increasing exports to China by 50% by 2030, with the possibility of surpassing this objective.