What is going to happen is this lack of deal will accelerate the (inevitable) decline of the Canadian car industry, which will reduce objections to the Chinese imports leading to those quotas changing in an ever accelerating feedback loop.
From the US strategic perspective this is moving out of the frying pan and into the fire.
Canada having closer trade ties with China is also a case of "out of the frying pan and into the fire" for Canada.
I think people forget that China is an authoritarian ethno state with a single leader for life.
But hey, they have cheap shit, so what better wagon to hitch your country to?
It's so obvious that you'd think its intentional.