China Boosts Canadian Oil Imports as Canada Looks Beyond the US Amid Growing Trade Tensions

China has sharply increased its imports of Canadian crude oil as Canada looks to expand its energy markets beyond the United States amid worsening trade relations between Ottawa and Washington.

Chinese customs data showed that Canadian crude imports rose by nearly 35 per cent year-on-year in August, while the value of those shipments jumped 64 per cent to about US$782 million. The increase comes as Chinese refiners seek supplies from a wider range of producers amid disruptions to global energy markets.

The growing trade is significant for Canada, which has historically depended heavily on the US as the destination for its oil exports. Around 90 per cent of Canadian oil exports still go to the United States, making access to alternative markets increasingly important as trade tensions between the two neighbours intensify.

A key development has been the expansion of the Trans Mountain pipeline, which tripled its capacity in 2024 and created greater access for Canadian crude to reach the Pacific coast. The new route has allowed Canadian producers to ship more oil to Asian markets, with China emerging as a major buyer of crude transported through the system.

Canada is also seeking to expand its liquefied natural gas exports. The country has increased engagement with Asian economies as part of a broader strategy to diversify trade and attract investment into its energy sector. Canadian officials say LNG shipments to Asia have grown since the opening of the LNG Canada export facility on the Pacific coast.

The energy shift comes against the backdrop of a major Canada-US trade dispute. Washington has imposed additional tariffs on Canadian goods, while Ottawa has introduced countermeasures and increased efforts to reduce its exposure to changes in US trade policy. Prime Minister Mark Carney has repeatedly highlighted the need for Canada to develop stronger international trading relationships.

For China, Canadian crude offers another source of supply as refiners adjust to changing global oil flows. For Canada, increased sales to China and other Asian markets provide an opportunity to reduce reliance on its traditional US market. However, the long-term scale of the shift will depend on oil demand, global prices, transport capacity and the future direction of Canada-US relations.