b'12American Journal ofTransportation ajot.comCanada and China: A new relationship By Stas Margaronis, AJOTOn January 16th, 2026, aningTransMountainExpansion announcementPrimeMinis- (TMX) which pumps oil with a ter Carney forges new strategiccapacityof890,000barrelsper partnershipwiththePeoplesday to the Port of Vancouver.RepublicofChinafocusedonMarkMaki,CEO,Trans energy,agri-food,andtradeMountain Corporation explained: stated: In a more divided andOnMay1,2024,webegan uncertainworld,Canadaiscommercialoperationsofthe building a stronger, more inde- expandedTransMountain pendent,andmoreresilientsystem.Buildingasystem economy. To that end, Canadaswhichincreasedcapacityfrom new government is working withapproximately300,000to urgencyanddeterminationto890,000barrelsperday(bpd) diversify our trade partnershipsis proving to be one of the most and catalyze massive new levelsstrategicinvestmentsCanada ofinvestment.Astheworldshas ever made. It has allowed us second-largesteconomy,Chinato diversify Canadas customersTaha Karabacak, the sales director of Turkish company Aydin Rugs, based in Istanbul presents enormous opportunitiesfor our oil which has increased for Canada in this mission. revenuesandprovidedCanada Frankfurts Heimtextil show highlightedCanadaandChinasigningwith trading options in the face thenewtradeseriesofagree- of tariffs from our biggest trad-all global textile trade ments in Beijing reflect a rekin- ing partner, the United States.dlingoftheirrelations.TheThe Trans Mountain Expan-Uncertainty and US tariffs come to the fore. result will be more Canadian oilsionProject(TMX)runsfrom and canola seed exports to ChinaEdmonton, Alberta, to the Westridge and more Chinese electric vehi- Marine Terminal at the Port of By Manik Mehta, AJOT cles and renewable energy tech- Vancouver, British Columbia.nology sales to Canada. Thereportnotedthatthe The recent four-day Heimtextil trade show inthough he was also increasingly exporting to theCanadas tilt toward ChinabiggestchallengeforTMXis Frankfurt, Germanythis is the worlds biggestScandinavia market.in2026andPrimeMinisterlimitedterminalcapacity:the home-textiletradeshow,attractingsome3000We have taken a big hit in the US marketMarkCarneysLiberalPartyWestridgeMarineTerminal exhibitors from 60 countriesshowcased latestbecause of the tariffs, even though our productsupsetelectionvictoryin2025cannotaccommodatetheVery products,designsandtechnologicalinnovationsare cheaper than those supplied by China and otherreflect Canadians negative reac- Large Crude Carriers (VLCC). while also giving exhibitors the opportunity to dis- countries, Bhojwani said. tiontowardshigherUStariffs cuss the current import tariffs, particularly in the Taha Karabacak, the sales director of Turk- and 51st State threats generatedp Ort OFp rincer upertUS, which impact world supply chains.ish company Aydin Rugs, based in Istanbul, whichby the Trump administration.However,VLCCscanbe Major textile suppliers such as China, India,manufactures a range of upholstery and floor-fur- MichaelGullo,VicePresi- accommodatedatthePortof Pakistan,Bangladesh,Vietnamandothersthatnishing products, including prayer mats, claimeddent, Policy, Business Council ofPrince Rupert. This supports the rely on the US market were affected by the TrumphiscompanywasthebiggestmanufacturerofCanadanoted:PrimeMinisterargument that a new pipeline to administrations tariffs. prayer mats, woven velvets, etc., with an annualMark Carneys visit to China Prince Rupert would allow bigger TheUStextilemarket,currentlyaround$production capacity of 50 million meters and aboutrepresented a meaningful step intankers to ship oil to China.227.30 billion, is seen as the worlds single larg- $100 million turnover.sustaining momentum for Cana- A pipeline to Prince Rupert est market.Exports account for 60% and domestic salesdas energy sector. The two-daycould be cheaper than adding a India has, meanwhile, reached a frameworkfor 40% of our turnover.Besides the US, we alsotrip resulted in a formal energythird line to TMX, said Heather understandingwiththeTrumpadministration,ship to Malaysia, Indonesia, Singapore, Germany,pact with Beijing, where the twoExner-Pirot, Director of Energy, viewed as a prelude to formalizing a trade agree- Africa, etc. Karabacak said. countries pledged to establish aNatural Resources and Environ-ment with the U.S., which has agreed to reduce itsIn the US, Aydin supplies to wholesalers andministerialdialoguetoexplorementfortheMacdonaldLau-combined tariff rate of 50%, including the 25%big stores. 2025 was a tough year for the textileopportunities from oil and gas, torierInstitute,asquotedbythe punitive tariffs because of Indias Russian oil pur- and furnishing industryand this was not justnuclear and renewables. Resources Works report.chases, down to 18%.Indian commerce ministerbecause of the US 15% tariffs on Turkish products,ThePrimeMinistersofficeThe Port of Prince Rupert occu-Piyush Goyal told journalists in India that a US-In- but also because of high costs in many countries,said that a key goal was to increasepies 667,731 hectares (1,650,000 diatradeagreementshouldbefinalizedsoon,Karabacak said.trade between the two countries:acres) of land and water along possibly, in March.Canadahassetanambitious20kilometres(12miles)ofMany exhibitors at the Heimtextil show toldF lOOrF urniSHingS AlSOH it goal to increase exports to Chinawaterfront. Theportislocated theAmerican Journal of Transportation that theOriental Weavers of Cairo, Egypt, which isby 50% by 2030. To achieve thisinPrinceRupertHarborin US textile and apparel imports experienced a sig- rated as one of the worlds leading suppliers ofoutcome, Prime Minister Carneythe North Coast Regional Dis-nificant, volatile shift during the first half of 2025floor furnishings, including rugs, carpets, etc., hasandPresidentXidiscussedtrictofBritishColumbia.The recording early-year 5.8% rise in global importsa production capacity of 70 million sq meters. increasingtwo-wayinvestmentPort of Prince Rupert is the third because,asA.R.Swami,anIndianhandloom40% of our sales are domestic while 60% arein clean energy and technology,busiestseaportinCanadaby textileexporterexplained,internationalsuppli- exported to foreign markets. We are the biggest sup- agri-food,woodproducts,andcontainer volume and cargo ton-ers had rushed then to make shipments to the USplier to Ikea chain stores worldwide. We ship to 133other sectors. nage after the Port of Vancou-before tariffs became effective.countries, but the US is our biggest market. EgyptianverandPortofMontreal. The products face 10% tariffs which did initially affect O ile xpOrtS Ak eyd river port is also the deepest ice-free i nternAtiOnAlS upplierSF Acet AriFF our exports to the US but after the initial challengingCanadianenergyindustrynaturalharborinNorth Amer-u ncertAintieS phase, our exports picked up inrepresentativesarewelcomingica, and the third deepest natural SanthoshVelayudhan,theJune/July, said Mohamed Salah,theclosertiesbetweenChinaharbor in the world.managingdirectorofExtraweav- wholooksafterthecompanysand Canada, because they worryTheChinesegovernment ers Private Ltd., based in Kerala,commercial product developmentaboutincreasinglydisruptivewas very clear they would like India,whichsuppliesfloor-cov- for the international markets. relations with the United States.moreCanadianenergyprod-erings,furnishingproducts,etc.MajormarketsofGoharThey see China as a more reli- ucts, Natural Resources Minis-said in an interview that he wasTextile,Faisalabad,Pakistan,able and long-term trading part- ter TimHodgsontoldreporters diversifying his exports to Southwhich manufactures bed requi- ner for Canadian exports. during the Carney visit to China Americanmarkets,Australia,sites, including bed sheets, andAccordingtoareportbyas quoted by Bloomberg.New Zealand and Africa to offsetotherhome-textileproducts,CanadasResourceWorks some of the tariff-related lossesare Australia, Europe, US, andreporter Nelson Bennett, Cana- i ncreASedc AnAdiAnA gin the US market.Latin America, with a $150 mil- dianenergyexpertsaresayinge xpOrtS tOc HinATheUSmarketabsorbedlion turnover in 2025, accordingthattheU.S.underTrumpisAtatime,whenTrump some 30% of our exportsthisto Aftab Gauhar, the companysprovingtobeanincreasinglyadministrationtariffsonChi-share has dropped to 20% follow- Mohamed Salah, Oriental Weavers director,whosaidthatexportscapriciousandhostiletradenesegoodsresultedinretal-ing the tariffs.We even offered ato the US had slightly declined.partner,creatinganimperativeiatoryChinesetariffsonU.S. 5% reduction in export prices to our U.S. buyers andTariffs have affected the exports of many Paki- todiversifymarketsforCana- agriculturalexportstoChina, yet our market share has dropped. The UK is nowstani textile exporters to the US although we havediancommodities,especiallyCanadasnewagreementwith our major market accounting for some 40% of ourseen a good international response at the Heimtex- oil: We already knew there wasChinawillincreasecanola exports after Indias signed a free trade agreementtil show, he added.unreliabilitybuildingthere,seedandseafoodexports: with that country, Velayudhan said.Tariffs have affected Chinas textile exports tosaid energy analyst Rory John- ByMarch1,2026,Canada PrakashBhojwani,managingdirectorofthe US Sun Pei Ning, the deputy director (exhi- ston of Commodity Context. expectsthatChinawilllower Chandra Mats Private Ltd., of Aurangabad, India,bitionsdepartment)atChinasSub-CouncilofIncreasedoilexportstotariffs on Canadian canola seed whichshowcaseditspolypropylenemats,etc.,Textile Industry (CCPIT), told AJOT that the yearChina will likely need an addi- (RELATIONSHIPcontinued said that his companys major market was the US,(HIGHLIGHTEDcontinued on page 17) tional pipeline on top of the exist- on page 17)'