Citing "economic wartime," B.C. Premier David Eby says his government backs a federal plan to respond to proposed U.S. tariffs, up to and including possible export tariffs and targeted export bans.
Eby made the comments Wednesday after meeting with premiers from across the country, in anticipation of U.S. president-elect Donald Trump’s threat to impose 25 per cent tariffs on Canada.
Eby said premiers understood the "importance of unity," and were in consensus on the need to prepare for Trump to impose the full 25 per cent tariff.
"We supported the federal government’s proposals around responding with tariffs and continue to support tariff response as well as the possibility of export taxes as well as export bans of particular and strategic commodities from Canada to the United States," Eby said.
Earlier Wednesday, Prime Minister Justin Trudeau agreed no one region of the country should "disproportionately bear the burden" in response to those potential tariffs, but added that "everything is on the table as potential responses."
The potential impact Trump’s tariffs would have on B.C. remains unclear, though experts say the forestry sector — a veteran of U.S. trade disputes — will likely be among the hardest hit.
"At some point, these tariffs are going to come back to the mills. The low-cost regions are going to keep producing. B.C. is the highest-cost producing region in North America," said Russ Taylor, president of industry consultancy Russ Taylor Global.
So if there are curtailments in the works because of low prices and high costs … B.C. mills will curtail first and the most … the loggers then curtail as well. It’s a house of cards after a while until you find the bottom.
Canadian leaders and industry are holding out hope that the U.S. could back down, or at least moderate its position on tariffs, though those hopes are beginning to fade as Trump’s inauguration approaches.
Trump will take office on Jan. 20, at which point the trade picture should become more clear.
B.C. also pushed for Ottawa to speed up federal approval of major projects in B.C., including critical mineral extraction.
The province is also fully supportive of Ottawa’s new border security plan.
"In particular around B.C.’s concerns related to money laundering, fentanyl, importing drug precursors as well as Ontario and Quebec’s concerns about migration," he said.
While premiers sought to present a united front on Wednesday, Alberta Premier Danielle Smith conspicuously declined to sign on to the federal plan.
Smith, who opposed blocking oil and gas exports to the U.S., posted to social media to explain her position.
"Federal government officials continue to publicly and privately float the idea of cutting off energy supply to the U.S. and imposing export tariffs on Alberta energy and other products to the United States," she wrote.
"Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs."
Conclusion
The response to Trump’s tariffs remains uncertain, but one thing is clear: the impact will be felt across the country. Canadian leaders are working together to present a united front, but there are still differences in opinion. As the situation unfolds, it’s essential to stay informed and adapt to the changing landscape.
FAQs
Q: What are the proposed U.S. tariffs?
A: The U.S. has threatened to impose 25 per cent tariffs on Canadian goods.
Q: How will the tariffs affect B.C.?
A: The forestry sector is expected to be among the hardest hit, with B.C. mills potentially curtailing production first.
Q: What is the federal government’s plan to respond to the tariffs?
A: The government has proposed a range of responses, including possible export tariffs and targeted export bans.
Q: What is the current state of the trade negotiations?
A: Negotiations are ongoing, but there is growing uncertainty as Trump’s inauguration approaches.
Q: How can I stay informed about the situation?
A: Follow Global News for updates and analysis as the situation unfolds.
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