B.C. premier says U.S. tariff could hit harder than 2008 recession, backs pandemic-style relief

Premier David Eby says protecting British Columbians from the potential impact of U.S. tariffs will be taken as seriously as the relief response to the COVID-19 pandemic.

He says every decision being taken by his ministers, including plans for next month's budget, will be made through the lens of a "potentially protracted trade war."

U.S. President Donald Trump has threatened to impose 25 per cent tariffs on Canadian goods starting Feb. 1, and his press secretary, Karoline Leavitt, told reporters at the White House on Tuesday the plan was "still on the books" for that day.

Eby says a package of relief could include pandemic-style "employment insurance" as well as grants and loans to get businesses through the impact of the tariffs on B.C., which could be more serious than the 2008 recession. 

"I think there's still time for President Trump to work with us because there is a strong desire on the part of the premiers and the federal government to address the concerns the president has raised," he told reporters on Tuesday.

"This isn't a fight we asked for. We don't want it, we don't need it, but we are willing to respond to these tariffs proportionately and as is required. We're willing to fight for our country."

Eby said every decision his ministers are making, including plans for next month's budget, is being made through the lens of a potentially "protracted trade war."

The B.C. government had previously estimated that the tariffs could result in the province losing about $69 billion by 2028, the entire length of a Trump presidency.

An estimated 54 per cent of B.C.'s exports go to the U.S., according to provincial figures, making it British Columbia's biggest trading partner. About 14 per cent of B.C.'s exports go to China, 11 per cent to Japan, and 10 per cent goes to other jurisdictions in Asia. 

It's projected the tariffs would also result in 124,000 fewer jobs in B.C. over the next three years, causing the unemployment rate to increase to 6.7 per cent in 2025, and 7.1 per cent next year.

WATCH | Mining association forecasts impact of tariffs: 

Tariffs an 'existential threat' to Canada's economy: Mining Association of B.C.

14 days ago

Duration 2:04

Michael Goehring, the president and CEO of the Mining Association of B.C., says Trump's threatened tariffs of 25 per cent could trigger a recession. He tells BC Today host Michelle Eliot government leaders need to stress the importance of B.C.'s provision of crucial minerals to the U.S. in their negotiations with the Trump administration.

The 2008 global financial crisis threw B.C.'s economy into reverse, going from three per cent growth in 2007 to a 2.3 per cent contraction in 2009, according to the province's annual financial and economic reviews.

It was the first contraction in GDP since 1982, with 54,900 jobs lost from 2008 to 2009 as unemployment spiked to 7.6 per cent and retail sales plunged.

Eby says every harm inflicted on British Columbians should be "met and matched" with a response to the United States.

He says he would support matching tariffs on U.S. goods and that any funds collected should be "immediately deployed" to help businesses survive and diversify their markets beyond the United States. 

Eby says the province will hope for the best and prepare for the worst as it waits to see exactly what form the U.S. tariffs will take.

"We're going to make sure that we have the resources available to support people, whatever the consequences are," he said. 

"There's always the possibility that we don't see those kinds of impacts, or we don't see the tariffs, or they're different than advertised. You just never know."