The introduction of a 25 percent tariff by the United States could cost British Columbia $69 billion and result in as many as 124,000 jobs lost between 2025 and 2028, the province says.
U.S. President-elect Donald Trump has said he will place 25 percent tariffs on all goods from Canada unless the country tightens up its border, curbing the flow of drugs and illegal immigrants into the United States. Trump vowed to enact the tariffs when he takes office on Jan. 20.
B.C.’s natural resource sector and manufacturing are expected to be the hardest hit, followed by the transportation and retail sectors, according to a Jan. 16 government news release.
B.C. Premier David Eby said his government has a plan in response to the tariff threat.
“We take this threat very, very seriously,” he said during a Jan. 16 news conference. “This is a direct economic threat to B.C. families. It is an attack on families in our province. It is an attack on Canadians.”
Eby said he has directed his cabinet ministers to take steps to mitigate the potential impacts of the tariffs.
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“I have asked every cabinet minister to review programs within their ministry to ensure that we are not wasting money on administration that should go to front line services,” he said.
Cabinet ministers are also to ensure programs are up-to-date to meet the new global environment, strengthen the provincial economy, and focus on growth, the premier said.
Eby laid out his three-tier plan during the conference, which includes preparing to respond to the tariffs, including retaliatory tariffs, and reducing the energy supply to the United States.
“One of the things that people often overlook about British Columbia is that we are a significant energy exporter to the United States,” he said.
BC Energy Exports
B.C. currently provides electricity, natural gas, and petroleum products to the United States.
“Without these products, Americans pay significantly more for electricity if they are able to access it, they pay significantly more at the pump, and they’ll pay significantly more for industrial users of natural gas,” Eby said.
He expressed support for dialogue on the province’s electricity distribution, emphasizing the importance of evaluating alternative markets or domestic consumption instead of focusing solely on U.S. exports. He said the tariffs could offer opportunities to expand trade with other provinces within Canada.
”We will be pushing across Canada to remove internal trade barriers so we’re stronger as a country,” he said. “Perhaps we can turn this threat into an opportunity for all Canadians to increase our prosperity and reduce our dependence on the United States.”
Eby said diversifying exports is another tactic that could facilitate this process.
“These tariffs are proposed not just against Canada, but against countries around the world. We will partner with those countries and work with them to respond and also to deepen our relationships with them,” he said.
“We have trade relationships, strong trade relationships across the Pacific, with many different countries, and this is an opportunity for us to deepen and strengthen those relationships and reduce our dependence on the United States.”
Premiers Meeting
Eby’s announcement comes a day after premiers from across the country met with Prime Minister Justin Trudeau to discuss a response to the tariffs.
They also discussed ways to avoid the tariffs, including Ottawa’s commitment to strengthen border security. The $1.3 billion plan includes the establishment of a new North American task force dedicated to addressing organized crime and the trafficking of synthetic drugs.
Alberta, Saskatchewan, and Ontario have recently made announcements about increased border patrols along their shared boundary with the United States.
The premiers and Trudeau issued a statement after the meeting saying all levels of government would continue to beef up border security and extend support to those sectors and individuals impacted by the tariffs.
Alberta Premier Danielle Smith opted not to sign the joint statement. She said her province did not support cutting off energy supply to the United States as a retaliatory measure or imposing export tariffs on Alberta energy.
Ontario Premier Doug Ford has said his province is anticipating job losses between 450,000 and 500,000. He has called on Canadians to buy Canadian-made goods to help strengthen the economy if hit by tariffs.
Canada’s economy could shrink by 2.6 percent due to the 25 percent tariffs, the Canadian Chamber of Commerce has said. It also said the move could impact 2.3 million jobs from coast-to-coast, and cost each family $1,900 per year.
Matthew Horwood contributed to this report.
