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Citing “a time of economic warfare,” BC Premier David Eby says his government supports a federal plan to respond to the proposed U.S tariffsincluding possible export tariffs and targeted export bans.
Eby made the comments on Wednesday after meeting with prime ministers from across the country, in anticipation of the US president-elect. Donald Trump threatened to impose 25 percent tariffs on Canada.
Eby said the prime ministers understood the “importance of unity” and agreed on the need to prepare for Trump’s imposition of the full 25 percent tariffs.
“We supported the federal government’s proposals for a tariff response and continue to support a tariff response, as well as the possibility of export taxes as well as bans on the export of certain and strategic goods from Canada to the United States,” Eby said.
Earlier Wednesday, Prime Minister Justin Trudeau agreed that no region of the country should “bear a disproportionate burden” in response to those potential tariffs, but added that “everything is on the table as possible responses.”
Eby said the premiers also united on the need to break down interprovincial trade barriers and work to expand trade partnerships with countries other than the United States.
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BC has also pushed for Ottawa to expedite federal approval of major projects in BC, including critical mineral extraction.
The province also fully supports Ottawa new border security plan.
“Especially around BC’s concerns about money laundering, fentanyl, the importation of drug precursors as well as Ontario’s and Quebec’s concerns about migration,” he said.
As the premiers sought to present a united front Wednesday, Alberta Premier Danielle Smith conspicuously refused to sign off on the federal plan.
Smith, who opposed blocking oil and gas exports to the US, took to social media to explain her stance.
“Federal government officials continue to publicly and privately float the idea of cutting off US energy supplies and imposing export tariffs on Alberta energy and other products to the United States,” she wrote.
“Until these threats end, Alberta will not be able to fully support the federal government’s plan to address the tariff threat.”
Eby downplayed the potential division within “Team Canada” on the tariff response, saying not everyone on board will agree on every tactic.
“Premier Smith has to do what he feels he needs to do with respect for his home audience,” Eby said.
“I just know that as a Canadian and a British Columbian, I’m going to stand firmly with the premiers to make sure we don’t limit the tools available to the federal government to respond to this.”
The potential effect Trump’s tariffs would have on B.C. remains unclear, though experts say the forestry sector — a veteran of U.S. trade disputes — is likely to be among the hardest hit.
“At some point, these tariffs will go back to the mills. Low cost regions will continue to produce. BC is the region with the highest manufacturing costs in North America,” said Russ Taylor, president of consulting firm Russ Taylor Global.
So, if there is a cut in operation due to low prices and high costs … the BC mills will cut first and the most … the cutters will also cut. After a while it’s a house of cards until you hit the bottom.”
Canadian leaders and industry are holding out hope that the U.S. might back off or at least soften its stance on tariffs, though those hopes are beginning to fade as Trump’s inauguration approaches.
Trump will take office on January 20, when the trade picture should become clearer.
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