Thursday January 16, 2025 | VANCOUVER, BC [Posted at 3:35 pm | Updated 8:24 pm]
by Mary P Brooke | Island Social Trends
BC is fighting back against the upcoming US tariffs that will almost certainly be imposed on Canada after US president-elect Donald Trump is sworn in to office on January 20.
“This is a very serious matter and it is our number one priority right now,” said Eby.
“It is a declaration of economic war in my opinion,” said BC Premier David Eby today in a media session in Vancouver.
As explained by Eby and Finance Minister Brenda Bailey today in Vancouver, internal planning assumptions for the BC economy now are based on 25% US tariffs being in place for the duration of the Trump presidency and a Canadian push-back set of tariffs as well.
Potential impacts of the tariffs on the BC economy include real GDP, employment, unemployment rate, corporate profits, and revenue loss.
The scope of uncertainty is broad, Eby explained. He pointed out that the “nature of these threats and the impacts on families” is significant.
The plan is responsive to the global environment as well, Eby said.
Strengthening the BC economy is key, if not essential, to the tariff response. “Shared prosperity is on the line here,” Eby added.
Budget still to come:
The analysis does not represent the Ministry of Finance’s economic and budget forecast, which is under development and will be released as part of Budget 2025 on March 4.
Mandate letters to cabinet:
Mandate letters were issued today to the BC NDP cabinet ministers, about three months after the October 19, 2024 election.
There were 23 mandate letters, the longest of which was for the Health Minister. [Mandate letter analysis coming tomorrow.]
Across all ministries, the ministers are to review programs within their ministry so as to “not waste money on administration that should go to frontline services”.
NDP ministers were appointed to cabinet on November 18, 2024 in the aftermath of the BC provincial election (for which results were not firm until November 8 of last year).
Three-part response:
BC is responding to the tariff threat, while “fully supporting all tools available to the federal government to respond to the US” in respnse to the “costly tariffs”. BC’s actions will be taken in partnership with the federal government and other provinces. BC will be “active participants” in the trade mission to Washington on February 12 which intends to “make sure they understand the consequences” of tariffs. He hopes to see American lawmakers understand that their biggest threat is China, not Canada.
BC will strengthen its economy. Permitting will be accelerated. BC has a “natural advantage on Pacific Ocean” and is also home to critical minerals and metals, said Eby. He wants to see deepening partnerships across Canada including electricity and energy. BC will push to remove internal trade barriers. Eby wants to” turn this threat into an opportunity” including reducing BC’s and Canada’s dependence on the United States.
Economic diversification. BC will support a federal approach to diversifying exports to countries around the world with deeper partnerships and trade relationships. Canada can be a good partner to the US on critical minerals, energy exports and intelligence, said Eby today.
Scary for families:
“The impact looks very scary for families,” said Eby today about tariffs on exported goods.
“Sharing this info is not to scare you, it is to reassure you that we understand the gravity of the threat to you and your family. We’re responding to this threat with everything that we have,” said Eby today.
Taking a positive tone: “We have the people with the skills, we have the resources, we have the geography. BC will lead the way in responding to these tariffs”.
Bizarre conversation:
“It is bizarre to me that we’re having this conversation.” He asserts that “it’s only to the benefit of China” for the US to be attacking Canada in this economic way.
BC will be better off:
Eby points out that the US and China are in intense disagreement with each other and that it’s causing global problems. He feels that Canada should be less reliant on” those two huge countries”. He points out that BC already has strong business relations with South Korea. Japan, the Philippines and ‘even India’ where trade relationships can be diversified. “We’re going to be better off as British Columbians’.
Internal trade barriers are a win-win for BC and Alberta – open door to have serious discussions about energy. There is potential across the country to deepen our relations across the country.
Eby feels BC and Canada can come out of the tariff war “better off than we went into it”, pointing out that Canada is not obligated to sell goods to the United States and should not rely on the US going forward. “We can’t always count on them.”
And, he notes, that Canada plays a role in energy security for the Americans – particularly electricity and oil.
Eby says his government will “ensure that we are oriented to protect British Columbians in this new reality”, he told media today.
===== RELATED:
- Premiers & PM discuss Canada’s strategy around US tariffs (January 15, 2024)
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