Canadian exports to China rose 30.1 percent to $21.74 billion in the first half of 2026, driven largely by energy and minerals, as Ottawa seeks alternatives amid a deepening trade dispute with the United States.

The surge comes as President Donald Trump applied 50 percent tariffs on roughly $20 billion worth of Canadian goods starting in August. Canada responded with retaliatory duties on about $20 billion in U.S. imports that took effect September 8. Further U.S. measures, including bans on certain Canadian products, are scheduled for September 29.

Prime Minister Mark Carney has made multiple overtures to diversify away from the U.S. market, which has long absorbed the majority of Canadian exports. In January, Carney became the first Canadian prime minister to visit China since 2017, securing an agreement that reduced Chinese tariffs on Canadian canola products in exchange for allowing a quota of Chinese electric vehicles into Canada at lower rates.

Energy exports to China, including crude oil and liquefied propane, grew 81.8 percent year over year during the period. Overall two-way goods trade with China reached $66.6 billion in the first half of the year.

Carney has also pursued closer ties with the European Union. Next week he is set to join EU officials to announce deeper cooperation on defense, energy, and supply chains. Discussions have included potential associate membership arrangements short of full EU integration.

Canadian officials have described the shift as necessary to reduce reliance on a single partner. Exports to the EU have already increased since the start of the current U.S. tariff regime, while shipments to the United States have declined.

Analysts note that exports to China and the EU remain below pre-dispute levels with the U.S. and are concentrated in a narrow set of commodities. The pivot carries ongoing risks given longstanding tensions with Beijing over security and market practices.