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Canada-China Trade Slips 10% as PM Carney Visits Beijing

Canada-China Trade Slips 10% as PM Carney Visits Beijing

Post by : Meena Ariff

Chinese imports from Canada dropped 10.4% in 2025, falling to $41.7 billion, marking the first decline since 2020. The decrease coincides with Canadian Prime Minister Mark Carney’s visit to Beijing, the first by a Canadian leader since 2017. Analysts see the fall as a sign of China’s continued economic influence over Canada and a reflection of ongoing trade tensions.

The visit aims to repair the trade and diplomatic rift that widened in 2024, after Canada imposed 100% tariffs on Chinese electric vehicles, following the United States. Carney emphasized on social media that China is Canada’s second-largest trading partner and that a pragmatic, constructive relationship will bring stability and prosperity for both nations.

Carney previously met Chinese President Xi Jinping in South Korea last October. While no major breakthroughs were achieved, both leaders agreed to advance bilateral ties, including issues like Canadian canola exports, which are still restricted by Chinese tariffs. Canadian Foreign Minister Anita Anand said discussions on canola were productive and would continue. She also stressed exploring broader collaboration while strengthening trade and economic relations, describing the relationship as complex but promising.

Canada’s re-engagement with China is partly motivated by the need to diversify export markets following trade tensions with the United States, including tariffs and statements by former President Trump. Ahead of Carney’s visit, Chinese media reminded Canada to maintain strategic autonomy and avoid aligning too closely with U.S. policies, which had previously caused setbacks in bilateral relations.

Under former Prime Minister Justin Trudeau, Canada raised concerns over human rights in China and accused Beijing of interfering in domestic affairs, claims China rejected. Minister Anand stated that Canada would continue to address difficult issues like human rights while also focusing on building the economy and engaging in constructive trade discussions.

The drop in Canadian exports mirrors a broader trend, as Chinese imports from the United States also fell 14.6% in 2025. Carney’s visit represents a critical effort to rebuild economic and diplomatic ties, balancing trade priorities with discussions on human rights and strategic collaboration between the two countries.

Jan. 15, 2026 11:37 a.m. 326

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