‘Economic wartime’: Eby supports federal tariffs and possible export bans

Citing ‘economic wartime,’ BC Premier said David Eby says his administration supports a federal plan to respond to the proposed U.S ratesup to and including possible export tariffs and targeted export bans.

Eby made the comments on Wednesday after meeting with prime ministers from across the country ahead of the new US president Donald Trump’s threat to impose 25 percent tariffs on Canada.

Eby said the premiers understood the “importance of unity” and agreed on the need to prepare for Trump’s imposition of the full 25 percent tariff.

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

Earlier Wednesday, Prime Minister Justin Trudeau agreed that no region of the country should “disproportionately bear the burden” in response to those potential tariffs, but added that “everything is on the table as a possible response.”

Eby said the premiers also agreed on the need to break down interprovincial trade barriers and work to expand trade partnerships with countries other than the United States.

BC also urged Ottawa to expedite federal approval of major projects in BC, including critical mineral extraction.

The province also fully supports Ottawa’s new border security plan.

“Specifically around B.C.’s concerns related to money laundering, fentanyl, importing drug precursors and Ontario and Quebec’s concerns about migration,” he said.

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

Smith, who opposed blocking oil and gas exports to the US, posted on social media to explain her position.

“Federal government officials continue to publicly and privately advance the idea of ​​cutting off energy supplies to the U.S. 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 to address the threatened tariffs.”

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

“Prime Minister Smith needs to do what she thinks she needs to do with her home crowd,” Eby said.

“I just know that as a Canadian and British Columbian, I will stand strong with the prime ministers to ensure that we do not limit the tools available to the federal government to respond to this.”

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

“At some point these tariffs will come back to the factories. The low-wage regions will continue to produce. BC is the highest cost manufacturing region in North America,” said Russ Taylor, president of industry consultancy Russ Taylor Global.

So if there are curtailments in operations due to low prices and high costs… the BC mills will curtail first and the most… then the loggers will curtail as well. After a while it’s a house of cards until you find the bottom.

Canadian leaders and industry are hopeful that the U.S. can back off or at least moderate its stance on tariffs, though that hope is beginning to fade as Trump’s inauguration approaches.

Trump will take office on January 20, after which the trade picture should become clearer.

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