With US trade war, China now top buyer for Canadian crude on Trans Mountain pipeline

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Source: Reuters

With US trade war, China now top buyer for Canadian crude on Trans Mountain pipeline

Amanda Stephenson and Arathy Somasekhar
Fri, May 16, 2025 at 6:08 AM EDT 4 min read

CALGARY/HOUSTON (Reuters) -China has emerged as the top customer for Canadian oil shipped on the expanded Trans Mountain pipeline, ship tracking data showed, as a U.S. trade war has shifted crude flows in the year since the pipeline started operating.

China's new interest in Canadian oil comes as U.S. President Donald Trump's trade war has strained relations between longtime allies Washington and Ottawa. It also reflects the impact of U.S. sanctions on crude from countries like Russia and Venezuela.

Canada is the world's fourth-largest oil producer, but its main oil-producing province of Alberta is landlocked with limited access to tidewater ports. That means the bulk of Canadian oil - about 4 million barrels per day or 90% - is exported to the U.S. via pipelines that run north-south.

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While oil is currently exempt from U.S. tariffs, Canada has sought to diversify its exports due to brief U.S. duties on its crude and Trump's threats to annex the country.

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Read more: https://finance.yahoo.com/news/us-trade-war-china-now-100828223.html