B.C.’s finance minister says president-elect Donald Trump’s proposed tariffs would have devastating effects on the province’s economy and growth.
Brenda Bailey said at a press conference on Thursday that tariffs would be “unprecedented in modern times.”
She said there is still uncertainty around the scope and amount of potential tariffs but B.C. has prepared a high-level assessment of potential impacts with the assumption that the tariffs remain in place for Trump’s term and that Canada retaliates in kind.
Wood, pulp and paper, metallic minerals and energy products are all exported to the United States, Bailey added.
“U.S. remains our largest trading partner.”
If the tariffs are put in place, it would mean a loss of $69 billion for B.C.’s economy by 2028, Bailey said.
It would mean 124,000 fewer jobs by 2028.
Investment would decline, with corporate profits falling by billions in 2025 and 2026, Bailey said.
The unemployment rate would increase to 6.7 per cent in 2025 and could increase to 7.1 per cent in 2026.
President-elect Donald Trump will return to the Oval Office on Monday and has repeatedly vowed to implement 25 per cent tariffs on Canadian goods.
“This is an attack on B.C. families,” B.C. Premier David Eby said on Thursday.
He said in times of war — and he considers this an economic war — people must come together and support each other.
“In 2019, the Bank of Canada estimated the impacts of a 25 per cent tariff. National Bank recently reported that the Bank of Canada’s estimate of the Canadian GDP impact “would exceed that of any previous recession, barring the temporary setback at the onset of the COVID-19 pandemic,” according to a government release.
Eby added that he has directed his cabinet ministers to gear up to face whatever Trump’s proposed tariffs throw at them.
Eby said his cabinet will focus on growing the province’s economy and protecting vital public services.
He recognized that this is a different mandate letter release day from years past with the looming threat of proposed tariffs.
“British Columbia has everything we need to succeed: abundant natural resources, access to markets and most importantly the people who call this place home,” Eby said.
“In times of instability, we are strongest when we work together to build on these unique advantages. Our team will prioritize growing the economy and building the wealth needed to support strong public services working families rely on.”
Part of the plan includes accelerating permit approvals for major job- and revenue-creating projects and economic and natural-resource ministers will work with industry, First Nations and communities to achieve this, Eby explained.
“͞Governments around the world are navigating a challenging fiscal environment, as we’re seeing slower global economic growth and threats from south of the border,” Eby said.
“A strong fiscal foundation is essential to helping people build a good life here. By making the best use of public dollars, we can protect services and tackle the challenges people worry about round the kitchen table, from delivering homes people can afford to hiring family doctors.”
On Wednesday, Eby joined Canada’s other premiers for a meeting with Prime Minister Justin Trudeau to discuss how they will respond to the tariffs if implemented.
Most of them said all options should be on the table for economic retaliation.
“If there are tariffs that are impacting B.C. then they need to be impacting provinces across the country. We can’t be turning to B.C. and Alberta to be carrying all the weight of the retaliation against the United States,” Eby said.
Alberta Premier Danielle Smith refused to sign a joint statement with her colleagues on the retaliation plan.