Canada Waives Tariffs on Korean Oil Exports

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canada waived a 3% tariff for South Korean imports of its crude oil. Prime Minister Carney says the historical economic relationship with the United States is now a weakness.

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Trans Mountain to Bolster Exports

The Trans Mountain crude oil pipeline to British Columbia will play a pivotal role in new export arrangements with South Korea, the head of the pipeline company announced. According to Industrial Info Resources data, Trans Mountain spent US$60 million on a project to triple the pipeline's capacity to 890,000 barrels per day (bpd). The project was completed in May 2024.



As the only network capable of delivering crude oil outside North America, the developers of the Trans Mountain pipeline said they are integral in supporting that effort. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Project Database can learn more about the Trans Mountain pipeline.

Canada is working to diversify its trade by courting overseas markets. Last year, total exports to South Korea were valued at US$1.4 billion, drawn primarily from crude oil, refined products, metals and wood. Late Monday, Alberta Premier Danielle Smith agreed to waive a 3% tariff on exports to South Korea to encourage more exports.

"In 2025, more than 65% of exported volumes were delivered to Asia from our Westridge dock in British Columbia," said Mark Maki, the chief executive officer of Trans Mountain. "We're pleased to have worked alongside the governments of Canada, Alberta and Korea to advance the growth of Canadian crude oil exports to Korea."

Premier Smith, who's advocated for more export options for Alberta's crude oil, added that zero tariffs for South Korea makes her province even more competitive.

"It creates more opportunities for Alberta producers, supports investment in our economy and secures long-term demand for our energy," she said.

For just crude oil exports, the provincial government said exports to South Korea last year were valued at $290 million, up more than 500% from prior-year levels. Exports could grow by at least that under the new free-trade arrangement.

By the Numbers

• 3% tariff waived
• 500% jump in South Korean trade revenue

Carney Says U.S. Ties are a Weakness

Tariffs disrupted the historically friendly relationship between the United States and Canada last year when U.S. President Donald Trump embraced a protectionist trade policy while at the same time making annexation threats against the nation.

In response, Prime Minister Mark Carney has vowed to halve the amount of U.S. trade by courting allies from Europe to Asia. In a video message on Monday, Carney said U.S. tariffs on many Canadian goods are the highest since the Great Depression.

"Many of our former strengths, based on our close ties to America, have become our weaknesses--weaknesses that we must correct," he said.

Smith, meanwhile, is financing a proposal for a new crude oil pipeline that would terminate in British Columbia. The so-called Northwest Coast Oil Pipeline already counts Calgary-based energy companies Enbridge, Trans Mountain and South Bow on its advisory committee.

Alberta's government said it would back early planning work with around US$10 million of its own money to support early engineering work, cost estimates and community engagement. Once those steps are completed, the provincial government said it expected the private sector to take up the project from there.

Key Takeaways

• Canada making strides in trade diversification.
• West Coast trade arteries are open for Asia.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).