‘Economic wartime’: Eby backs federal tariff response, possible export bans

Citing “economic wartime,” BC Premier David Eby says his government supports a federal plan to respond to proposed US ratesup to and including possible export tariffs and targeted export bans.

Eby made the comments Wednesday after meeting with prime ministers from across the country, awaiting the US president-elect of Donald Trump threat to impose 25 percent tariffs on Canada.

Eby said prime ministers understood the “importance of unity” and were in consensus on the need to prepare for Trump to impose the full 25 percent tariff.

“We supported the federal government’s proposals to respond with tariffs and continue to support tariff response, as well as the possibility of export taxes and export bans on certain and strategic goods from Canada to the United States,” Eby said.

Earlier Wednesday, Prime Minister Justin Trudeau agreed that no one region of the country would “bear the burden disproportionately” 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 break down interprovincial trade barriers and work to expand trade partnerships with countries other than the United States.

BC also pushed for Ottawa to speed up federal approval of major projects in BC, including critical mineral extraction.

The province is also fully supported by Ottawa’s new plan for border security.

“Especially on BC’s concerns related to money laundering, fentanyl, importing drug precursors, as well as Ontario and Quebec’s concerns on migration,” he said.

While premiers wanted to present a united front on Wednesday, Alberta Premier Danielle Smith conspicuously refused to sign up to the federal plan.

Smith, who opposes blocking oil and gas exports to the US, took to social media to explain her position.

“Federal government officials continue to publicly and privately entertain the idea of ​​cutting off energy supplies to the US 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.”

Eby downplayed potential division within the “Team Canada” tariff response, saying not everyone on board would agree on every tactic.

“Premier Smith has to do what she feels she has to do with respect to her home audience,” Eby said.

“I just know that as a Canadian and a British Columbian, I’m going to stand strong with premiers to make sure we don’t limit tools available to the federal government to respond to this.”

The potential impact of Trump’s tariffs on B.C. remains unclear, although experts say the forestry sector — a veteran of U.S. trade disputes — is likely to be one of the hardest hit.

“At some point these rates will return to the mills. The low-cost regions will continue to produce. BC is the highest-cost producing region in North America,” said Russ Taylor, president of industry consultancy Russ Taylor Global.

So if there are job cuts due to low prices and high costs…BC mills will cut back first and most…the loggers will also cut back. It’s a house of cards after a while until you hit the bottom.”

Canadian leaders and industry are holding out hope that the U.S. might back down, or at least moderate its stance on 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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