Canada-China Trade Reset: What It Means for Burnaby Businesses

The tariff-reduction agreements signed between Canada and China last week Friday (16 January 2026), represents a significant shift in bilateral economic relations, and it could influence Burnaby businesses in several ways. First, the dramatic reduction in Canada’s tariff on Chinese electric vehicles (EVs) — from a prohibitive 100 % to about 6.1 % under a managed import quota — may lead to greater availability of more affordable EVs in the Canadian market. This could benefit Burnaby automotive dealers, EV service providers, fleet operators, and infrastructure companies (e.g., charging station installers) by expanding consumer choice and stimulating demand for electric mobility products and associated services. More affordable EV options could attract price-sensitive customers and stimulate local sales volumes, potentially growing ancillary markets such as EV maintenance, charging infrastructure, and aftermarket accessories.

For companies in the local automotive supply chain and logistics sectors, the policy shift may create both opportunities and challenges. On one hand, increased imports of Chinese-built EVs could lead to greater demand for cross-border transportation, warehousing, and distribution services through Vancouver and Lower Mainland ports, benefiting freight and logistics firms operating in Burnaby. On the other hand, some existing Canadian automotive suppliers may face heightened competition and price pressure, especially if Chinese brands begin to penetrate the market more deeply or consider establishing joint ventures that could recalibrate supply chain dynamics. Competitors like Tesla — which already has a strong presence in Canada — might benefit initially, but new entrants (e.g., BYD, Nio) could diversify industry competition, affecting inventory sourcing, marketing strategies, and partnerships for Burnaby auto-focused businesses.

The resumption and potential expansion of canola and other agricultural exports to China also have indirect ramifications for the Burnaby economy. While Burnaby is not an agricultural production hub, its businesses — particularly food processors, exporters, and logistics firms — could see increased activity tied to agricultural supply chains. Improved market access for canola, peas, seafood, and other Canadian commodities may stimulate demand for port handling, cold storage, and freight forwarding services. Importers holding distribution centers in the Lower Mainland might expand operations in response to rising export volumes, increasing local business activity, employment, and related service sector demand.

Finally, the broader strategic diversification of Canada’s trade relationships away from exclusive reliance on the U.S. market — embodied in this deal — could influence Burnaby’s business landscape by encouraging international investment and partnerships. Companies headquartered in Burnaby may find new opportunities to engage with Chinese investors, technology partners, and supply chain collaborators seeking entry points into the Canadian market. At the same time, local policymakers and businesses will need to navigate the geopolitical tensions inherent in expanding Sino-Canadian economic ties — balancing competitive advantage against potential trade policy risks, such as retaliatory tariffs or shifts in U.S./Canada trade policy. This evolving global context may prompt Burnaby firms to refine risk management strategies, diversify export markets, and pursue targeted partnerships in Asia and beyond.