Canadian exports to China surged by 30% in the first half of 2026, with total trade between the two countries increasing by 3.6% compared to the previous year, as per insights from Statistics Canada. The data, examined by experts, point to a revitalized relationship between Canada and China, as part of Canada’s strategy to broaden its economic horizons amidst strained ties with the United States.
Trade in goods between Canada and China amounted to $66.6 billion in the first half of 2026, marking a 3.6% upturn, with exports soaring by 30% to $21.74 billion year on year. Notably, the energy and minerals sectors dominated the exports, constituting 58.4% of all exports to China during this period. Energy, especially crude oil and liquefied propane, witnessed an impressive 81.8% growth, while exports of metal ores and non-metallic minerals, including copper ore, rose by 29%.
“This surge in exports to China during the first half of the year is unprecedented for us,” mentioned Bijan Ahmadi, the Executive Director of the Canada China Business Council. The surge in trade can be attributed to various factors, including the amelioration in diplomatic and economic relations between the two countries following past tensions.
Against the backdrop of escalating trade disputes with the U.S., Canada has been actively seeking new trade partnerships and reducing its dependency on its southern neighbor. The recent agreements between Canada and China, such as the influx of Chinese electric vehicles into the Canadian market in exchange for tariff concessions on Canadian agricultural products, have contributed to the positive trade trajectory.
The Trans Mountain Pipeline’s near full-capacity operation in June has significantly enhanced access to Western Canadian crude oil for Asian markets. Additionally, disruptions in oil shipments due to geopolitical conflicts, such as the U.S.-Israeli actions against Iran, have driven oil prices up, prompting customers to turn to alternative suppliers like Canada.
Furthermore, the report highlights a notable decline of 5.8% in imports from China, leading to a 25% reduction in Canada’s trade deficit with the country. This shift in import trends may be linked to the relocation of certain manufacturing activities outside of China, such as in Vietnam.
While the overall trade scenario has improved, the report underscores that the agricultural sector’s performance saw only modest growth, with fluctuations in specific exports like lobsters. Farmers are aiming to diversify their markets and reduce reliance on a single trading partner, especially with the temporary nature of the recent trade agreements with China.
Looking ahead, experts emphasize the need to explore further engagement with the Asia-Pacific region, emphasizing the vast market potential it offers. The data from the latter part of the year will provide a more comprehensive outlook, but the positive trends in the first half indicate Canada’s progress towards meeting its export goals with China by 2030, and possibly surpassing them.