China has slashed oil imports from US by 90 percent in favour of Canada in the aftermath of the raging tariff war sparked by President Donald Trump.
Oil imports represent one of the most significant realignments in global energy trade patterns of the past decade.
Data reveals Chinese refiners have slashed US crude purchases by approximately 90% between 2023 and 2025, redirecting roughly 1.2 million barrels per day (bpd) toward alternative suppliers, with Canada capturing a substantial portion of this market share.
“The pipeline expansion presented China with strategic access to Alberta’s oilsands reserves amid deteriorating US-China relations,” note industry analysts Robert Tuttle and Yongchang Chin, highlighting the fortuitous timing of Canada’s infrastructure development.
The deterioration in US-China relations has fundamentally reshaped global oil trade flows.
US crude exports to China plummeted from 450,000 bpd in 2022 to a mere 45,000 bpd by April 2025, representing a staggering 90% reduction as Beijing implemented its diversification strategy.
“The 2024 National Defense Authorization Act’s port restrictions made US crude politically untenable,” explains geopolitical strategist Li Wei, referring to congressional actions limiting Chinese vessels’ access to certain US terminals.
Beyond pure politics, the shift reflects China’s strategic calculation to reduce economic vulnerability.
With tensions showing no signs of abating, Chinese refiners have accelerated their pivot to Canadian suppliers, viewing the northern route as more insulated from geopolitical investor strategies.
The timely completion of the Trans Mountain Pipeline Expansion has revolutionized Canada’s export potential.
The $21.4 billion infrastructure project added 590,000 bpd of capacity, enabling direct shipments to Asian markets without dependence on US Gulf Coast terminals.
The 980-kilometer pipeline network, incorporating 12 sophisticated pump stations, overcame formidable coastal mountain terrain to connect Alberta’s landlocked resources with tidewater access at British Columbia’s ports.
Cenovus CEO Alex Pourbaix underscored the economic transformation:
“Our netback to Asia improved by $8.50 per barrel post-TMX, creating irreversible market momentum.”
This price advantage has catalyzed long-term supply agreements, including PetroChina’s 10-year offtake contract with Canadian Natural Resources Ltd. (CNRL) for 100,000 bpd starting July 2024.
