Canada's Trade with China Dips by 10% Amid PM Carney's Beijing Trip

Post by : Mina Rahman

In a notable downturn, Canadian imports from China saw a decline of 10.4% in 2025, now totaling $41.7 billion, marking the first drop since 2020. This reduction coincided with Prime Minister Mark Carney’s significant visit to Beijing, the first for a Canadian leader since 2017. Analysts suggest this trend reflects China's ongoing economic impact on Canada and highlights persistent trade frictions.

The primary goal of the visit is to bridge the growing trade and diplomatic gap that escalated in 2024, triggered by Canada imposing 100% tariffs on Chinese electric vehicles, mirroring actions taken by the U.S. Carney took to social media to remind that China is Canada’s second-largest trading partner, advocating for a pragmatic dialogue aimed at fostering stability and mutual prosperity.

Last October, Carney had a meeting with Chinese President Xi Jinping in South Korea. Though no significant agreements were reached, both leaders tentatively consented to enhance bilateral collaboration, tackling matters such as Canadian canola exports, which continue to be hindered by Chinese tariffs. Foreign Minister Anita Anand described the talks regarding canola as fruitful and reaffirmed their commitment to seek broader partnerships while aiming to fortify economic ties, acknowledging the complexity yet potential of their relationship.

Canada’s renewed engagement with China is driven by the necessity to diversify its export portfolio amid rising trade frictions with the United States, which included tariffs and commentary from former President Trump. Ahead of Carney's journey, Chinese media counselled Canada to maintain strategic independence and avoid overly aligning with U.S. directives that previously strained ties.

Under Justin Trudeau's administration, Canada expressed concerns regarding human rights issues in China and accused Beijing of meddling in domestic affairs, accusations that China has vehemently denied. Minister Anand affirmed that Canada would persist in addressing pressing matters like human rights alongside constructive trade discussions aimed at economic growth.

The downturn in Canadian exports is a reflection of broader patterns, as U.S. imports into China fell by 14.6% in the same year. Carney's visit is deemed crucial in rekindling economic and diplomatic relations, balancing trade agendas with human rights conversations and collective strategic goals.