Trump-Driven Trade Wars Spark Canadian Diversification Efforts

Canada's oil and gas industry has long been dependent on its largest customer, the United States. In 2024, Canada exported 4.2 million barrels per day of crude oil, with 95.7% going to the US.

This reliance was highlighted by Donald Trump's trade wars, which imposed tariffs on Canadian steel and aluminum, among other sectors. While these tariffs had negative effects on some Canadian industries, they also forced Canada to look in the mirror and address its own complacency.

The Trans Mountain Expansion, completed in May 2024, increased capacity from 300,000 barrels per day to 890,000 barrels per day, giving Canadian crude direct access to international markets. This has led to an increase in exports to non-US destinations, with 75% of the increase moving by marine vessel.

Canada's west coast LNG projects also offer a strategic advantage, being only 10 shipping days from Asia. The country's natural gas industry is expected to play a key role in meeting Asian demand, with the Kitimat facility designed to export around 14 million tonnes of LNG per year.