B.C.’s response to unjustified U.S. tariffs

President Donald Trump has threatened to impose a 25% tariff on all Canadian goods, and a 10% tariff on energy exported to the United States starting March 4, 2025.

Canada is ready to retaliate with 25% counter-tariffs on $155 billion worth of U.S. goods. B.C. is also ready to respond in areas we control, like liquor and purchasing. Canada is united in standing up for our country.

Current situation

• The U.S. tariffs were set to go into effect February 4, 2025, but were paused for 30 days to allow for further discussions.
• On February 11, the President announced 25% tariffs on steel imports from several countries, including Canada starting March 12.
• On February 24, the President announced the tariffs on all Canadian goods will go into effect March 4.

Ready to respond

• B.C. remains ready with the rest of Team Canada to immediately respond with counter-tariffs and other measures if U.S. tariffs go into effect.
• Leaders across Canada and B.C. will continue meeting with American decision-makers to advocate on behalf of Canadians about the harm tariffs will bring to families on both sides of the border.
• B.C. is moving full steam ahead on growing a strong economy and finding new trade markets to reduce our reliance on the U.S.

No matter what happens with the tariffs in the coming months, we’ve learned we can no longer rely on the United States as a reliable trading partner.

B.C. remains focused on growing a strong economy with diverse trade partners to create good jobs and wealth across the province.

Actions we’re taking

• Strengthening our economy by fast-tracking major projects to create good-paying, family-supporting jobs.
• Knocking down trade barriers within Canada to make it easier to buy and sell goods in other provinces.
• Diversifying trade by finding new markets for B.C. goods so we’re less reliant on the U.S.

Standing strong together

Talented people across B.C. are coming together to stand up for British Columbians.

• Trade and Economic Security Task Force – People from the business community, industry, labour and First Nations are working together to bring in short- and long-term measures to grow B.C.’s economy and protect jobs, families and businesses.
• Premier’s task force on agriculture and food economy – Brings together leaders from the agriculture, processing, seafood and retail sectors to ensure B.C.’s food supply and food economy continue to grow in the face of tariffs.
• B.C. Softwood Lumber Advisory Council – Leaders from the forestry sector, labour, experts on U.S. relations and government officials are developing a diplomatic and trade strategy and measures to fight for B.C.’s interests in the ongoing softwood lumber dispute.
• Cabinet Committee – Ministers are coordinating actions across government to ensure B.C.’s response to the tariff threats is fast, tough and fully focused on British Columbians, while strengthening, growing and diversifying our economy for the long-term.

B.C. is fast-tracking approvals and permits on major projects that are ready to move forward and will create many good jobs to support our economy in the face of tariffs.

The initial list is valued at $20 billion in investment and creates 8,000 family-supporting jobs, especially in rural and remote communities.

Initial list of major projects

• Eskay Creek Gold/Silver project: NW, Stewart
• Highland Valley Copper Expansion: Logan Lake
• Red Chris Expansion: NW, Dease Lake
• Mount Milligan Copper and Gold: NW, Fort St. James
• Cedar LNG: NW, Kitimat
• NEBC Connector: NorthRiver Midstream: NE, Fort St. John area
• Enbridge T-North (Aspen Point): NE 
• North Coast Transmission Line: NW, Prince George to Terrace
• BC Hydro Call for Power: 10 projects throughout the province
  • Brewster Wind Project – Campell River - Wind
  • Boulder and Elkhart Wind Project - Merritt - Wind
  • Highland Valley Wind Project - Logan Lake - Wind
  • K2 Wind Project – Kelowna - Wind
  • ShTSaQU Solar Project - Logan Lake - Solar
  • Mount Mabel Wind Project - Logan Lake - Wind
  • Nilhts'i Ecoener Project - Prince George - Wind
  • Nithi Mountain Wind Project - Fraser Lake - Wind
  • Stewart Creek Wind Project - Fort St. John - Wind
  • Taylor Wind Project – Taylor – Wind

This is not an exhaustive list. Many other projects are underway, and we are working to identify more, while ensuring consultations, permitting and environmental protection continue.

B.C. welcomed Ottawa’s billion-dollar plan to further secure our ports and border. We look forward to working with them on it.

But let’s be clear, less than 1% of the fentanyl and illegal crossings into the United States come from Canada.

Trump has been threatening countries around the world with tariffs to generate revenue, claim critical minerals and expand U.S. territory. He’s often said Canada’s only option is to become the 51^st state.  We will always stand up for our country and will never become the 51^st state.

Canada’s border action plan

• $1.3 billion border plan announced in December 2024 will:
  • Reinforce the border with new choppers, technology, personnel and K9 teams
  • Enhance coordination with American partners
  • Increase resources to stop the flow of fentanyl including:
    • launching a precursor chemical detection unit
    • building a new drug profiling centre to combat fentanyl trade
• New commitments announced in February 2025 to:
  • Ensure 24/7 surveillance of the border
  • Appoint a Fentanyl Czar to coordinate efforts to stop drug trafficking, especially at the border
  • List criminal cartels as terrorist organizations
  • Launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering
  • Issue a new intelligence directive on organized crime and fentanyl, backed with $200 million

How this makes a difference

• Nearly 10,000 frontline personnel are and will be protecting the border.
• Canada has reduced illegal southbound crossings 89% from peak 2024 levels.  

Learn more

• Strengthening border security | Government of Canada
• Border actions and outcomes to date | Government of Canada

President Trump’s tariffs are an attack on Canadian jobs and families. If we don’t stand up for ourselves, he will keep coming back for more.   

Canada is united in defending our workers, businesses and communities and sending a clear signal that we will not be pushed around.

Actions Canada will take if needed

• If the U.S. tariffs go into effect, Canada is prepared to impose 25% counter-tariffs on up to $155 billion worth of goods from the United States.
• This is a first step. The federal government is considering all options, including non-tariff measures, if the U.S. continues to impose unfair tariffs on Canada.

How this makes a difference

• Canada is the top customer for U.S. goods and services. We buy more than China, Japan, France and the United Kingdom combined.
• Canada is a key supplier of products essential to the U.S. economy.
• Over US$2.5 billion worth of goods and services cross our shared border every day – one of the most successful economic partnerships in the world.
• Millions of jobs in both countries rely on this partnership.

Learn more

• Canada announces next steps in its response plan to unjustified U.S. tariffs (Feb 2, 2025)

B.C. supports Canada's plan to impose counter-tariffs on American products. We will also take action in areas we control, like liquor and purchasing.

Actions B.C. will take if needed

• If U.S. tariffs go into effect, B.C. is prepared to bring back measures previously announced before the 30-day pause:
  • Direct BC Liquor Distribution Branch to stop buying American liquor from “red states”
  • Remove top-selling “red state” brands from shelves in public liquor stores
  • Direct B.C. government and Crown corporations to buy goods and services from Canada and other countries first
• We are prepared to take additional action if needed. We expect our response will adapt and shift over time.

How this makes a difference

• BC Liquor is one of the largest buyers of alcohol in the world. These targeted actions will result in a $40 million a year loss for manufacturers in the states governed by elected officials most supportive of Trump’s unfair tariffs.

Learn more

• Premier announces immediate response, vows to defend B.C. against Trump tariffs (Feb 1, 2025)

Our priority is to keep workers working – through initiatives like helping businesses reach new markets and by accelerating priority projects. But if you or someone you know is facing job loss or wanting to gain new skills for a new career path, help is available.

Key programs

• WorkBC provides a wide range of free employment services and support online and in-person, like skills training, resume and job search support, and work experience.
• StrongerBC Future Skills Grant provides $3,500 to cover short-term skills training in high-demand, well-paid careers.
• Free upgrading and English courses let adults take courses to get a high school diploma, upgrade skills for post-secondary or improve their English.
• Employment Insurance (EI) provides benefits to people who lose their job through no fault of their own, like work shortages or layoffs.

Find programs and supports to help your business grow and employees thrive.

Key programs

• B.C. Small businesses and entrepreneurs provides resources and supports to start, manage and grow your business.
• B.C. Employer Training Grant provides funding to small, medium and large businesses to train new employees or upskill current employees. Additional support is available for the forestry sector.
• B.C. Small Business Venture Capital Tax Credit provides a 30% tax credit to encourage corporations to invest in B.C. small businesses.
• Business Development Bank of Canada provides financing solutions and advice to small and medium-sized businesses in all industries and at every stage of growth.
• Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
• Export Navigator provides free support and ongoing guidance to help businesses expand beyond local markets.
• Work-Sharing Program through Employment and Social Development Canada helps employers and employees avoid layoffs, when there is a temporary decrease in the normal level of business activity that is beyond the control of the employer.

Get help reaching new customers in new international markets to grow your business and stay competitive.

Key programs

• Trade and Invest BC offers a wide variety of resources to help your business tap into international markets to grow sales, broaden opportunities and increase competitiveness.
• Export Navigator provides free support and ongoing guidance to help businesses expand beyond local markets.
• Trade Accelerator Program (TAP) provides small- and medium-sized enterprises with proven strategies, resources and mentorship to scale up, develop export plans and reach international markets.
• Trade Commissioner Service helps Canadian businesses grow with confidence by connecting them with its funding and support programs, international opportunities, and its network of trade commissioners in over 160 cities worldwide.
• Export Development Canada helps Canadian companies of all sizes succeed in global markets with trade knowledge, financial solutions, insurance, equity and connections.

Actions we’re taking

• Trade Diversification Strategy – B.C. is finding new import and export markets to grow a stronger, more diversified and resilient economy.
• Key trade markets – B.C. has a network of trade and investment representatives in key markets across Europe, Asia and North America.
• Trade and Economic Security Task Force – People from the business community, industry, labour and First Nations are working together to bring in short- and long-term measures to grow B.C.’s economy and protect jobs, families and businesses.

We want to hear from you

• Ask a question or tell us how U.S. tariffs may impact your business

B.C. is standing up for workers and communities affected by changes to the forestry industry.

Key programs

• Supports for forestry workers include skills training and educational opportunities for new careers.
• B.C. Employer Training Grant provides funding to small, medium and large businesses to train new employees or upskill current employees. Additional support is available for the forestry sector.
• Community Workforce Response Grant (CWRG) Community Response Stream provides funding to help communities impacted by forestry changes offer short-term skills training to unemployed and precariously employed people to address emerging labour market needs.
• Community and Employer Partnerships provides funding for community-driven projects to increase training and work experience for job seekers with complex needs and who have difficulty accessing traditional employment services.

Action we’re taking

• B.C. Softwood Lumber Advisory Council – Leaders from the forestry sector, labour, experts on U.S. relations and government officials are developing a diplomatic and trade strategy and measures to advocate for forestry workers and fight for B.C.’s interests in the ongoing softwood lumber dispute.

Learn more

• See more supports for forestry workers and rural communities

B.C. leads Canada’s agriculture and fishing industry, exporting more than 500 agrifood products and 170 seafood products. Our high-quality food and award-winning wines are in demand around the world.

Programs and resources are available to help agrifood businesses grow and reach new markets and provide support during market shifts or rising costs.

Key programs

• Buy BC members can apply to get the Buy BC logo and add it to your packaging and marketing materials to build customer awareness, increase exposure and expand sales. Sign up today – it's free!
• B.C. Business and market development provides tools, information and resources to start, manage and grow a farming business.
• Trade and Invest BC offers a wide variety of resources to help your business grow, get export ready and reach international markets, including market research, export navigators, trade accelerator workshops and funding.
• Agritech Development Program helps reduce upfront costs, remove barriers and mitigate the risks to grow your agritech business.
• Tree Fruit Climate Change Response Fund provides more support in spring 2025 to help growers recover from consecutive years of crop loss and stay strong in the threat of U.S. tariffs.
• AgriStability helps farmers manage income losses because of disaster, poor production, rising costs or bad market conditions.
• Farm Credit Canada is a dedicated lender for the agriculture and agri-food sectors and provides a range of financial products and services to support Canadian farmers and business related to farming.

Actions we’re taking

• Premier’s task force on agriculture and food economy – Brings together leaders from the agriculture, processing, seafood and retail sectors to ensure B.C.’s food supply and food economy continue to grow in the face of tariffs

Manufacturing is the fourth largest contributor to B.C.’s economy, producing high quality goods that are in demand around the world and creating thousands of good jobs.

B.C. manufacturers have access to a wide range of programs and resources to grow and stay competitive.

Key programs

• Increasing productivity and innovation
• Supporting clean manufacturing and net-zero readiness
• Developing workforce and talent
• Accessing new markets
• Preserving and developing industrial land

Learn more

• Manufacturing sector programs and resources

B.C. has everything we need to succeed – abundant natural resources, clean energy, access to global markets and skilled, hardworking people.

We’re working with communities, workers and businesses to expand mining, natural gas and renewable energy projects to strengthen our economy and create good jobs and wealth across B.C.

Actions we’re taking

• Fast-tracking priority projects.
• Expanding the critical minerals sector – mining high demand minerals the world needs like copper, germanium and molybdenum used in technology, clean energy and infrastructure products like laptops, electric vehicles and power lines.
• Moving renewable energy projects under the authority of the BC Energy Regulator to:
  • create a single window permitting process
  • ensure rapid permitting and robust regulation
  • expand B.C.’s electricity grid to meet the demand from mining, port electrification, hydrogen and fuel processing and shipping projects
• Exempting future wind projects from the environmental assessment process to deliver clean and affordable power.
• Finding new markets for B.C. goods across Canada and the world.

Learn more

• New legislation will accelerate B.C. renewable energy projects (Feb 6, 2025)

Over US$2.5 billion worth of goods and services cross the Canada-U.S. border every day. Tariffs will devastate both of our economies, hurt workers and businesses, and cost families more at the store.

How tariffs work

• Tariffs are a tax or duty a government puts on goods coming from other countries.
• Businesses spend more to bring in goods and materials from other countries and pass the extra cost on to consumers by raising prices.
• Customers pay more at the store.

Risk of tariffs

• Tariffs are considered a regressive tax because it hurts working class households significantly more than wealthy ones.
• Tariffs were heavily used in the U.S. during the ‘Gilded Age’ in the late 1800s. It created vast wealth for the wealthy and extreme poverty for the working class.
• The U.S. brought back tariffs in 1930 to protect businesses and farmers from competition, but it led to retaliatory tariffs, slowed down global trade and worsened the Great Depression.

Watch

• What is a tariff | Government of Canada

Under current free trade agreements, nearly all products traded between Canada, Mexico and the United States are tariff free – creating the largest free trade region in the world.

Free trade agreements

• Canada, Mexico and the U.S. signed a new free trade agreement in November 2018, under President Trump, to grow the economy, create jobs and raise the standard of living in all three countries.
• Canada and the U.S. have had free trade agreements since 1989, first signed by President Ronald Reagan and Prime Minister Brian Mulroney.
• In total, Canada has 15 trade agreements, helping Canadian businesses access markets in 50 countries reaching 1.5 billion customers.

Learn more

• Benefits of trade agreements | Government of Canada

A trade deficit means a country is importing more goods than they are exporting.

President Trump claims the U.S. is buying more from Canada than Canada is buying from the U.S.

Trade deficit facts

• The deficit is a small one, mostly due to the oil and gas the U.S.  buys from Canada at a discount, process in their refineries, and re-sell at a higher price.
• If oil and gas is removed, the U.S. would have a trade surplus, and Canada would have the deficit.
• Canada is the U.S.’s top customer. We buy more than China, Japan, France and the United Kingdom combined.

Learn more

• Canada trade reports | Office of the Chief Economist

Canada and the U.S. have one of the most successful economic partnerships in the world. We are each other's biggest customers.

Canada-U.S. trade facts

• Nearly US$1 trillion worth of goods move back and forth every year.
• Canada is the largest supplier of energy to the U.S. and an important supplier of other products essential to their economy.
• Canada is the top customer for U.S. goods and services. We buy more than China, Japan, France and the United Kingdom combined.

B.C. exports to the U.S. in 2023

• 54% of B.C. exports were sent to the United States.
• 67% of these were for wood, pulp and paper, metallic mineral and energy products.
• Top 5 states for B.C.’s exports were: Washington ($9.8 billion), California ($3.2 billion), Illinois ($2.1 billion), Texas ($1.5 billion), Oregon ($1.3 billion).

Fact: Canada is the top customer in 36 states, and among the top 3 customers in 10 more states.

Learn more

• Canada announces response to U.S. tariffs (Feb 2, 2025)
• B.C. announces response to U.S. tariffs (Feb 1, 2025)

With a 25% tariff on Canadian goods, B.C. could face an economic slowdown, job losses and financial strain.

Potential impact on B.C.

• B.C. could lose billions in economic activity
• Real GDP could shrink  each year
• Tens of thousands of jobs could be lost by 2028, especially in the natural resource and manufacturing
• Unemployment rate could rise
• Businesses could lose billions each year
• Provincial revenue could decline

Standing up for British Columbians

• B.C. is moving full steam ahead on growing a strong economy and finding new markets so we’re less reliant on the United States.
• Good news – B.C. has what the world needs:
  • Almost half of our exports go to other countries.
  • Our natural resources are in high demand – like critical minerals, energy and lumber.
  • We have 2 of Canada’s busiest ports, connecting our products to 170+ countries.

Learn more

• B.C. provides economic assessment of Trump’s tariff threat (Jan 16, 2025)