In a significant realignment of global energy trade, China has drastically reduced its imports of U.S. crude oil by approximately 90%, redirecting its sourcing towards Canadian oil. This shift comes amid intensifying trade disputes between Beijing and Washington, characterized by escalating tariffs and retaliatory measures.
According to data from Vortexa Ltd., Chinese imports of U.S. oil have plummeted from a peak of 29 million barrels per month to just 3 million barrels. Concurrently, imports from Canada have surged, with China receiving a record 7.3 million barrels of crude from Canada’s Vancouver port in March 2025 .
This strategic pivot is facilitated by the completion of the Trans Mountain Pipeline Expansion (TMX) in late 2023, which added 590,000 barrels per day of export capacity, granting Alberta’s landlocked oil sands direct access to Asian markets .
Wenran Jiang, president of the Canada-China Energy & Environment Forum, noted, “Given the trade war, it’s unlikely for China to import more U.S. oil. They are not going to bank on Russian alone or Middle Eastern alone. Anything from Canada will be welcome news” .
The trade conflict escalated in early 2025 when the U.S. imposed tariffs of up to 145% on Chinese goods, prompting China to retaliate with tariffs of 84% on U.S. imports . These measures have rendered American oil economically unfeasible for Chinese refineries, inflating costs by $51 per barrel .
China’s shift to Canadian oil not only mitigates the impact of U.S. tariffs but also aligns with its broader strategy to diversify energy sources and reduce reliance on politically volatile suppliers. Canadian crude, particularly from Alberta’s oil sands, offers a cost-effective and reliable alternative, appealing to China’s modern refineries .
