B.C. premier says U.S. tariffs could hit harder than 2008 recession, calls for pandemic-style relief.download (88).jpeg
U.S. President Donald Trump is threatening to impose a 25% tariff on all Canadian imports starting Feb. 1.
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British Columbia Premier David Eby speaks to reporters about potential retaliatory tariffs against the United States during a news conference Tuesday.
Premier David Eby says protecting British Columbians from the potential impact of U.S. tariffs will be taken as seriously as responding to the COVID-19 pandemic.
He said any decisions his ministers make, including plans for next month's budget, will be made in the context of a "potentially protracted trade war."
US President Donald Trump has threatened to impose 25% tariffs on Canadian goods starting February 1, and his press secretary, Caroline Leavitt, told reporters at the White House on Tuesday that the plan was "still on the table" for that day. Eby said a relief plan could include pandemic-style "employment insurance," as well as grants and loans to help businesses weather the impact of tariffs in B.C., which could be worse than the 2008 recession.
"I think there's still time for President Trump to work with us because there's a strong desire on the part of premiers and the federal government to address the concerns raised by the president," he told reporters.
"This is not a war we asked for. We don't want it, we don't need it, but we are prepared to enforce these standards proportionately and as necessary. We are prepared to fight for our country."
Eby said every decision his ministers make, including plans for next month's budget, is made against the backdrop of a "potentially protracted trade war."
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Trump's threatened tariffs could have a $69 billion impact on B.C.'s economy by 2028, province says
The British Columbia government has previously estimated that the tariffs could cost the province about $69 billion by 2028, the entire duration of the Trump presidency. According to provincial figures, 54% of British Columbia's exports go to the United States, making it British Columbia's largest trading partner. About 14% of British Columbia's exports go to China, 11% to Japan and 10% to other Asian countries.
The tariffs are also projected to result in the loss of 124,000 jobs in British Columbia over the next three years, pushing the unemployment rate to 6.7% in 2025 and 7.1% next year.
Michael Goehring, president and CEO of the British Columbia Mining Association, says Trump's threatened 25% tariffs could trigger a recession. He told BC Today host Michelle Eliot that government leaders should emphasize the importance of B.C.'s supply of critical minerals to the United States in their negotiations with the Trump administration. 2:04
According to the province's annual financial and economic reports, the global financial crisis of 2008 caused British Columbia's economy to shrink from 3 per cent growth in 2007 to a 2.3 per cent contraction in 2009.
This was the first contraction in GDP since 1982, with 54,900 jobs lost from 2008 to 2009, while unemployment rose to 7.6 per cent and retail sales plummeted.
Eby says any harm done to British Columbians must be "made good" by a response from the United States.
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He says he would support imposing equivalent tariffs on U.S. products and that any funds raised should be "distributed immediately" to help companies survive and diversify their markets beyond the U.S.
Eby says the province is hoping for the best and preparing for the worst as it waits to see exactly what shape the U.S. tariffs will take. "We have to make sure we have the resources to support people, regardless of the consequences," he said.
"It's always possible that we won't see these kinds of impacts, that we won't see the rates or that they will be different than what has been announced." You never know.
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