The economic impact of U.S. President Donald Trump’s proposed tariffs could rival the impact of the Great Recession, B.C. Premier David Eby said Tuesday.
“Projections that we have seen indicate that this could be more serious for our provincial economy than the 2008 recession,” Eby said at a press conference.
“Certainly the most severe economic impact we’ve seen in a while here in Canada, in British Columbia.”
Trump said he wants to impose tariffs on Canadian and Mexican goods, which could go into effect as early as Feb. 1.
Last week, B.C. Finance Minister Brenda Bailey said that if the tariffs are put in place, it would mean a loss of $69 billion for B.C.’s economy by 2028.
It could also mean 124,000 fewer jobs by 2028.
Investment would decline, with corporate profits falling by billions in 2025 and 2026, Bailey said.
Get breaking National news
The unemployment rate would increase to 6.7 per cent in 2025 and could increase to 7.1 per cent in 2026.
According to Statistics Canada, B.C. was significantly impacted by the U.S. recession in 2008 primarily due to a decline in lumber sales to the United States.
Production fell by 18.3 million cubic metres, which was half of the total decline for Canada.
The B.C. government reported that the recession marked the first annual decline in the province’s real GDP since 1982.
Eby said his government will make sure the federal government sticks to its commitment to provide support for British Columbians impacted by Trump’s tariffs.
Eby said that even if British Columbians are not directly working in export-related industries, every resident could be affected by the tariffs.
“Everything that we are doing in government right now, every decision that we’re taking, every action by ministers, is going through the lens of what these tariffs mean for British Columbia and ensuring that we’re in a position to respond, to support people, support families and support businesses through this tariff,” Eby said.
He added that he wants the federal government to treat this situation as seriously as it did during the COVID-19 response.
“Whatever it takes to make sure that we come out the other end stronger is very important,” Eby said.
“Through COVID we supported businesses here in British Columbia with grants to be able to get through. The federal government had loans. They provided people supports who were laid off through employment insurance. These are the kinds of responses that we expect to see.”
Comments