U.S. tariffs on Canada are now in effect. How will they affect B.C.?
B.C.'s government says it has a plan to respond to tariffs, which are expected to affect numerous industries
Long-discussed U.S. tariffs on Canadian goods came into effect on Tuesday and are expected to have a serious impact on British Columbia's economy.
B.C.'s government says it has has a plan to respond to the 25 per cent tariff, which is expected to affect numerous industries from lumber to construction to agriculture.
"I expect that uncertainty and disorder will be with us and our friends in America for the next four years," B.C. Finance Minister Brenda Bailey said Monday.
Here is a look at how the tariffs could affect British Columbians.
How will tariffs affect B.C.'s economy?
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.
Bailey said Monday that 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.
The province says it is encouraging British Columbians and Canadians to support local businesses and buy B.C. and Canadian food and products first when there is an option.
What is the B.C. government doing to retaliate?
Foreign Affairs Minister Mélanie Joly said Canada has a package of retaliatory measures ready to hit back at Trump right away.
The B.C. government has said it is ready to respond in areas it can control, such as liquor and purchasing.
The government said it is prepared to direct the B.C. Liquor Distribution Branch to stop buying American liquor from states that voted Republican.
It is also ready to direct B.C. government and Crown corporations to buy goods and services from Canada and other countries first.
What is B.C. doing to limit the economic impact of tariffs?
The provincial government says it is working to fast-track major natural resources projects, knock down interprovincial trade barriers, and explore new markets for B.C. goods so that the province is less reliant on the U.S.
What is happening with B.C.'s lumber industry?
Kurt Niquidet, president of the B.C. Lumber Trade Council, says he expects lumber to be hit with a 25 per cent tariff in addition to duties.
The U.S. Department of Commerce announced Monday that it's planning to almost triple the anti-dumping duties on Canadian softwood lumber, bringing total levies to almost 27 per cent even before the American president's threatened tariffs.
What about other industries?
Tariffs have sparked uncertainty in B.C.'s housing market, with developers worried that the already sky-high cost of new construction is about to be driven up even further.
Eby has said he has spoken with leaders of major mining and refining companies in B.C., who indicated they are pivoting operations to redirect products such as aluminum and copper to alternative markets.
B.C. has launched a new $10-million fund to help tree fruit farmers facing tariffs on the heels of years of devastatingly low crop yields.
What can we expect from the B.C. budget?
The tariffs have taken effect on the same day B.C.'s NDP government is set to present its budget to the legislature.
Bailey said Monday that now is not the time to make deep cuts, and instead, she's planning for uncertainty in her budget to make sure programs and services are protected.
The finance minister says the budget she'll present leaves room to respond to the economic turmoil that comes from U.S. tariffs.
The B.C. NDP backtracked on a $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 province is already going into the budget carrying a record deficit forecast of $9.4 billion this fiscal year, and Bailey didn't rule out the possibility it could grow to $10 billion.
Jock Finlayson, chief economist for the Independent Contractors Association, says if the government had been running a balanced budget it would have had a lot more room to face the crisis coming from the tariffs.
"They've spent all the money that you would like to be able to spend in a crisis," he said. "They spent it all in a pre-crisis environment. So now we face a crisis, and the cupboard is essentially bare."
With files from Rafferty Baker, Chad Pawson and The Canadian Press