'All bets are off': Premier Eby lays out B.C.'s retaliation to U.S. tariffs

As U.S. tariffs on Canadian goods go into effect, B.C. is following through on retaliatory measures it promised last month that aim to hurt Americans' wallets. 

At midnight, the U.S. president slapped 25 per cent duties on most Canadian products. And while Canada's leaders are warning residents what this could mean for Canadians, they're also sending a message to Americans: this will cost them, too. 

"Everything from the cost of pasta, to the cost of a home or a car, or to turn on the lights or to fill up a tank of gas, is going to go up in a way that is noticeable and significant for American families," Premier David Eby said during a news conference Tuesday morning. 

"For Americans who work in manufacturing, the factories that you work in, the inputs that you use to make the things that are sold around the world have just become significantly less competitive. Your jobs will be taken by people living in countries other than the United States that have access to the raw materials that Canada provides, without tariffs." 

Eby announced Tuesday that B.C. liquor stores are pulling all 'red state' products — as in liquor produced in states run by Republican leaders. 

"We understand who is attacking us. We understand where this is coming from. We want to send a message particularly to those governors, to those congresspeople," Eby said. 

Canadian businesses and stakeholders will be prioritized for any provincial government procurement, Eby said, adding that past trade agreements meant Canada had to view U.S. products as equal to our own. 

"Obviously all bets are off." 

Finally, Eby announced there will be support for businesses and individuals impacted by the tariffs but didn't elaborate on who will qualify or how it will work. 

On top of provincial measures, the premier is urging British Columbians to continue to avoid travel to the United States and redouble efforts to buy Canadian products. 

None of this is unexpected; it was all announced on Feb. 1, when 25 per cent tariffs were initially expected to begin. Canada and the U.S. reached an agreement that put the tariffs on hold for 30 days, while Canada appointed a "fentanyl czar" to address Donald Trump's concerns around illicit drugs moving across the Canada-U.S. border. 

Uniting British Columbians, Canadians

At the beginning of his remarks Tuesday, Eby acknowledged that while North American politics have been fractured, people across the world are suffering as a result of Trump's decisions.

In particular, he noted that the U.S. has, as of today, ended military aid to Ukraine.

"This is a massive shift in global politics, and it is deeply disturbing to everyone who values freedom, democracy, sovereignty and the global order that has ensured prosperity for so many people around the globe for generations," Eby said.

"It does put into perspective the news that many Canadians woke up to this morning."

He said Canada and B.C. have been given no choice but to respond to these tariffs.

"We're in a strange moment where what worked in the past, committing to address areas of shared concern … is met with threats to our sovereignty," Eby said. "As troubling as that is, as disturbing as that is, the amazing thing we've seen is it's brought out a sense of pride, a sense of courage and a sense of solidarity among all Canadians that we haven't seen in a long time."

Prime Minister Justin Trudeau, who is in the last few days of his federal leadership, said Tuesday morning that Trump is trying to prompt "a total collapse of the Canadian economy" because he thinks that will "make it easier to annex us."

But Trudeau said that will never happen because "when it comes to defending our great nation, there is no price we all aren't willing to pay."

He spoke directly to Trump, referencing an opinion piece published in the Wall Street Journal calling Trump's trade war "dumb."

"It's not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you're a very smart guy, this is a very dumb thing to do," he said.

Provincial budget to come

Later today, B.C.'s finance minister will present the province's budget for the fiscal year ahead, which will respond to tariffs while also trying to manage a $9.4-billion deficit. 

The province has already backtracked on a promised $1,000 grocery rebate and middle-class tax cut which would have applied to 90 per cent of British Columbians by this spring but came with an estimated $1.8-billion price tag.

The B.C. government has estimated that tariffs could lead to a cumulative loss of $69 billion in economic activity in the province between 2025 and 2028.

It has also estimated that tariffs would result in 124,000 job losses by 2028, an annual decline in corporate profits of between $3.6 billion and $6.1 billion and a reduction in annual government revenue between $1.6 billion and $2.5 billion.

Finance Minister Brenda Bailey said more than half of B.C.'s exports are to the U.S., making the province less exposed to U.S. tariffs than Ontario and Quebec, which export around 75 per cent of their goods south of the border.

Eby said B.C. is in a good position to work with other international markets. 

"We are situated in a place that faces the major markets of the world across the Pacific. We're the gateway to the Pacific for the entire country," he said.

"We are strong, we are tough, we are resilient, we are exceptional and we are ready to meet this moment."