The U.S. is B.C.’s number 1 trading partner, receiving 54.2. per cent of exports, followed by China at 14.1 per cent and Japan at 11.1 per cent.
With U.S. president-elect Donald Trump set to be sworn in on Monday, Premier David Eby has released his long-awaited mandate letters for ministers with a focus on addressing the threats of crippling 25 per cent tariffs by the incoming American administration.
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“This is a challenging and serious threat and we wanted to share with you our best information about what we understand this threat means for British Columbians,” said Eby, expressing his belief that Trump’s threats are “bizarre” and push the province, and Canada, away from their largest trading partner.
Currently the U.S. receives 54.2 per cent of B.C. exports. The province’s second and third largest trading partners are China at 14.1 per cent and Japan at 11.1 per cent.
According to forecasts released by Finance Minister Brenda Bailey, there could be 124,000 fewer jobs in the province by 2028 if the tariffs were put in place. These would be concentrated in the natural resource, manufacturing and retail sectors, with the province’s GDP declining by 0.6 per cent in both 2025 and 2026.
Overall, the province could face a cumulative hit of $69 billion to its real GDP between now and 2028. Corporate profits could be lowered by up to $6.1 billion, while government revenue projections could lower by $2.5 billion.
The unemployment rate could also increase to 7.1 per cent by 2026 compared to current projections of 5.8 per cent.
Eby told reporters he has tasked ministers with reviewing all spending within their portfolios in an effort to find savings that can be used to reinforce front-line services.
He said he supports Ottawa’s position that all options remain on the table for responding to tariffs, including a potential export ban on the sale of B.C.’s critical minerals and the shut off of electricity flowing across the border.
One of the other actions Eby said his government will take is in the reduction of internal trade barriers between provinces. A recent report by the National Bank of Canada found B.C.’s own restrictions on exports to other jurisdictions within Canada is equivalent to a tariff of 23 per cent.
To this end, the premier said Energy Minister Adrian Dix has already met with his counterpart in Alberta to discuss lowering internal trade barriers on the flow of electricity between the two provinces, a topic B.C.’s neighbour has been reluctant to have in the past.
Dix has also been tasked with briefing American officials on the negative impact of tariffs, expanding existing markets and finding new ones for B.C. energy, and creating a contingency plan for B.C. Hydro and other exporters in the event tariffs are imposed.
Forests Minister Ravi Parmar and Agriculture Minister Lana Popham have been given much the same task for their portfolios, with Parmar set to undertake a review of B.C. Timber Sales while Popham will focus on improving food security.
When it comes to finding new markets, Eby said countries like Japan, South Korea, Vietnam and India will be key as they already represent some of the province’s largest trading partners outside the U.S.
Jobs Minister Diana Gibson and Rick Glumac, minister of state for trade, have been told to expand those markets through the trade diversification strategy, starting with South Korea.
“I see two challenges for us in relation to trade. We are dependent on two countries that, right now, are in intense disagreement between each other and, as well, are in positions and conducting themselves in ways that cause concern globally, the United States and China,” said Eby.
“We’re finding ways to work together to diversify that trade relationship so we’re less dependent on these two countries that clearly, right now, are a source of similar global instability.”