In an effort to diversify away from the US, Canada and China have entered a new phase of tariff negotiations. On January 16th 2026, Prime Minister Mark Carney formalized a new trade agreement that will create major changes in the logistics world, specifically when it comes to Electric Vehicles (EV’s), Agriculture and Steel & Aluminum. These changes point to a restructuring of economic and trade relations that will shift Brokers and Forwarders into a new era of changes in supply chain routes, customs compliance and shipment volumes. 

Canada-China Trade Deal Overview

Electric Vehicle Tariff Reductions

Canada will allow up to 49,000 Chinese electric vehicles (EV) into the Canadian market, with the most-favoured-nation tariff rate of 6.1% (PM.GC.CA). This is a major shift away from the 100% tariff from 2024. This move is expected to create a lower cost of EV’s for Canadians over a span of 5 years and aid with green initiatives in Canada.

Major Reduction in Agriculture Tariff

In response to the introduction of Chinese EV’s Canada expects a reduction in retaliatory agricultural tariffs which includes:

• Canadian Canola Seed tariff reduction from the current 84% to 15% by March 1st 2026.
• Canadian canola meal, lobsters, crabs and peas will be free from relevant anti-discrimination tariffs from March 1, 2026, until at least the end of 2026.

Steel & Aluminum Tariff-Remission Extension

Canada will continue to extend the tariff remission program already in place for Chinese Steel & Aluminum through 2026. In an expansion to the program, Canada will also be adding in seven steel, two aluminum and four steel-derivative products. These changes will take effect March 1, 2026.

How Brokers & Forwarders Can Prepare

Diversifying Trade Routes

Brokers and Forwarders will need to pay attention to the changing landscape of supply chain routes as global trade diversifies. Here is what they need to know:

• “All-Canada” Routes Prioritized: Logistics providers are increasingly using “All-Canada” routes to circumvent the United States. This strategy aims to avoid potential secondary tariffs imposed by the US, resulting in cargo moving via rail directly from ports like Prince Rupert into the Canadian interior, bypassing traditional US hubs such as Chicago or Memphis.
• New Direct Shipping Services: Carriers are establishing new direct service strings between major Chinese ports (e.g., Shanghai, Ningbo) and Vancouver. This initiative reduces the reliance on potentially volatile US West Coast ports.

Documentation Changes

Brokers and Forwarders must stay current on customs documentation procedures due to reduced tariffs and changing regulatory requirements. Specifically, they should closely review product classification, valuation, duties and origin criteria to adjust for tariff modifications.

Changes In Shipment Volumes

A significant surge in West Coast capacity is underway, driven primarily by the accelerated development of the Roberts Bank Terminal 2 project. This expansion will dramatically increase Canada’s ability to handle direct cargo originating from Asia.

Support Matters

Emerging trade agreements are shifting the economic and trade landscape and require constant monitoring and adaptability. Portway International provides the expert support necessary to manage these complexities while giving you the advantage of focusing on what truly matters: growth.

We act as an extension of our clients, ensuring smooth customs clearance and full compliance with all global trade requirements. Our experienced team of trade experts, compliance specialists, and logistics veterans excel at navigating new reporting, evolving trade agreements, and geopolitical supply chain impacts.

Make sure to check back in as we continue to track this evolving landscape and provide you with the tools you need to move effortlessly through changes in global trade.

📌 Read The Press Release Here: https://www.pm.gc.ca/en/news/news-releases/2026/01/16/prime-minister-carney-forges-new-strategic-partnership-peoples 

🤝 Inquire with us today: https://portwayintl.com/contact/ 

#CanadaChinaTrade #ElectricVehicles #EV #Tariffs #CustomsBrokers #FreightForwarders #Asia #DiversifyingTradeRoutes #CustomsCompliance 

Sources:

• Prime Minister Carney forges new strategic partnership with the People’s Republic of China focused on energy, agri-food, and trade

https://www.pm.gc.ca/en/news/news-releases/2026/01/16/prime-minister-carney-forges-new-strategic-partnership-peoples 

• Canada & China Trade Deal: Reshaping Procurement Strategies

https://procurementmag.com/news/canada-china-trade-deal-reshapes-procurement-strategies 

• Canada-China Trade Deal: A Critical Shift in Sourcing

https://et2c.com/news/canada-china-trade-deal-global-sourcing-2026/

• A new era in Canada-China trade: Key tariff changes and industry impacts

https://www.mltaikins.com/insights/a-new-era-in-canada-china-trade-key-tariff-changes-and-industry-impacts/