Citing “economic wartime,” British Columbia Premier David Eby says his government supports a federal plan to respond to proposed U.S. tariffs, including possible export tariffs and targeted export bans.
Eby made the comments Wednesday after meeting with prime ministers across the country, anticipating U.S. President-elect Donald Trump's threat to impose 25 percent tariffs on Canada.
Eby said the premiers understood the “importance of unity” and agreed on the need to prepare for Trump to impose the full 25 percent tariff.
“We support the federal government's proposals around responding with tariffs and continue to support the tariff response, as well as the possibility of export taxes, as well as export bans on specific and strategic commodities from Canada to the United States,” he said Ebby.
Earlier Wednesday, Prime Minister Justin Trudeau agreed that no region of the country should “disproportionately bear the burden” in response to those potential tariffs, but added that “everything is on the table as possible responses.”
Eby said the premiers were also united on the need to tear down interprovincial trade barriers and work to expand trade partnerships with countries other than the United States.
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BC also pushed for Ottawa to expedite federal approval of major projects in BC, including the extraction of critical minerals.
The province also fully supports Ottawa's new border security plan.
“In particular, around BC concerns related to money laundering, fentanyl, importation of drug precursors, as well as Ontario and Quebec concerns about migration,” he said.
While the premiers attempted to present a united front on Wednesday, Alberta Premier Danielle Smith conspicuously refused to sign the federal plan.
Smith, who opposed blocking oil and gas exports to the United States, posted on social media to explain his position.
“Federal government officials continue to publicly and privately raise the idea of cutting off energy supplies to the United States and imposing tariffs on the export of Alberta energy and other products to the United States,” he wrote.
“Until these threats cease, Alberta will not be able to fully support the federal government's plan to address the threatened tariffs.”
Eby downplayed potential division within the “Team Canada” tariff response, saying not everyone involved would agree on all tactics.
“Premier Smith needs to do what she thinks she needs to do with respect to her home crowd,” Eby said.
“I just know that as a Canadian and a British Columbian, I'm going to stand firm with the prime ministers to make sure we don't limit the tools available to the federal government to respond to this.”
The potential impact Trump's tariffs would have on British Columbia is still unclear, although experts say the forestry sector, a veteran of U.S. trade disputes, will likely be among the hardest hit.
“At some point, these tariffs will hit factories again. Low-cost regions will continue to produce. BC is the highest-cost producing region in North America,” said Russ Taylor, president of industry consulting firm Russ Taylor Global.
So if there are reductions in jobs due to low prices and high costs…BC mills will cut back first and most…loggers will then cut back as well. “It’s a house of cards after a while until you find the bottom.”
Canadian leaders and industry remain hopeful that the United States can reverse course, or at least moderate its position on the tariffs, although those hopes are beginning to fade as Trump's inauguration approaches.
Trump will take office on January 20, at which point the trade picture should become clearer.
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