‘Time for economic war’: Eby backs federal tax response, possible ban on exports
Citing “time of economic war,” BC Premier David Eby says his government supports a federal plan to respond to the proposed US tariffs, up to and including potential export tariffs and targeted export bans.
Eby made the comments on Wednesday after meeting with the country’s prime ministers, anticipating US president-elect Donald Trump’s threat to impose a 25 percent tariff on Canada.
Eby said the prime ministers understood “the importance of unity,” and agreed on the need to prepare for Trump to impose a full 25 percent tariff.
“We have supported the federal government’s proposals regarding tax accountability and we continue to support tax accountability and the possibility of export taxes and restrictions on the export of certain goods and techniques from Canada to the United States,” said Eby.
Earlier on Wednesday, Prime Minister Justin Trudeau acknowledged that no one region of the country should “bear equal responsibility” for responding to those costs, but added that “everything is on the table as possible answers.”
Eby said the prime ministers are also united in the need to break down trade barriers between states and work to increase trade relations with other countries outside the United States.
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BC also pushed for Ottawa to expedite federal approvals for major projects in BC, including mining of key minerals.
The province also fully supports Ottawa’s new border security initiative.
“Especially around BC’s concerns related to money laundering, fentanyl, importing drug precursors and Ontario and Quebec’s concerns about immigration,” he said.
While the premiers sought to deliver a joint statement Wednesday, Alberta Premier Danielle Smith pointedly refused to sign off on the government’s plan.
Smith, who has opposed the ban on oil and gas exports to the US, posted on social media to explain his position.
“Federal government officials continue to float in public and private the idea of cutting off US energy supplies and imposing tariffs on the export of Alberta energy and other products to the United States,” he wrote.
“Until these threats are resolved, Alberta will not be able to fully support the federal government’s plan to address the threatened tax.”
Eby downplayed the potential split between “Team Canada’s” tax response, saying not everyone on board will agree with every strategy.
“Prime Minister Smith needs to do what he feels he has to do out of respect for his home audience,” Eby said.
“I just know that as a Canadian and a British Columbian I will stand firmly with the Prime Minister to ensure that we do not limit the tools available to the federal government to respond to this.”
The potential impact of Trump’s tariffs 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 costs will go back to the mills. Low-cost regions will continue to produce. BC is one of the highest value producing regions in North America,” said Russ Taylor, president of industry consulting firm Russ Taylor Global.
So if there are job cuts due to lower prices and higher costs … BC mills will cut first and more … loggers then cut back. It’s a house of cards after a while until you find the bottom.”
Canadian leaders and industry are hopeful that the US will back down, or at least reduce its stance on tariffs, although those hopes are beginning to fade as Trump’s inauguration approaches.
Trump will take office on January 20, by which time the trade picture should be clearer.
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