As tariffs threaten B.C.’s key industries, government, unions, and businesses hurry to protect jobs and minimize economic damage
Illustration by Sage Blackwell.
As Canada faces a potential trade war with the U.S. after multiple threats from President Donald Trump to instate 25 per cent tariffs for Canadian products, provinces such as B.C. prepare for significant impacts that could ultimately redefine our economic landscape.
A news release by the provincial government published on Jan.16 assessed that “B.C. could see a cumulative loss of $69 billion in economic activity between 2025 and 2028” if tariffs were to be introduced. During a presentation also on Jan. 16, Minister of Finance Brenda Bailey stated that this preliminary assessment estimates that as a result, “there would be around 124 000 fewer jobs in B.C.” by 2028, as unemployment would continue to rise over the seven per cent mark.
While B.C.’s economy is less dependent on U.S. exportations in comparison with other provinces — such as Alberta, Ontario, and Quebec, which send over 75 per cent of their goods to the US — the Ministry of Finance and BC Stats state that “the U.S. is B.C.’s biggest trading partner and accounts for over 50 per cent of B.C. exports.”
B.C.’s location offers access to more opportunities than other provinces for trade diversification, particularly with Asian countries such as China. China is B.C.’s second-largest trade partner, accounting for 14.1 per cent of B.C.’s international exports of 2023.
However, this diversification also poses risks.
“We are dependent on two countries that right now are in intense disagreement between each other,” said Premier David Eby during the briefing on Jan. 16.
According to Minister Bailey, the top exports are “wood, pulp and paper, metallic mineral, and energy products,” which, combined, made up around 67 per cent of total goods exports in 2023. B.C. would see the strongest impacts in these sectors, as it is estimated that the largest declines would be in natural-resource sector export industries and associated manufacturing. Other sectors, such as transportation and retail, would be affected as well.
“This is a direct economic threat to B.C. families,” said Premier Eby.
The ministry projects sharp reductions in employment in sectors related to the exportation of natural goods, but some of those industries have been grappling with overall decline. According to data from the Labour Force Survey produced by Statistics Canada, the forestry industry has seen a steady reduction of workers over the past decade. In 2015, there were over 21 000 employees, but there are just over 14 000 as of 2024.
Paul Finch, president of the BC General Employees’ Union, said that this is a federal issue.
“What we need is leadership at the national level to bring together Canada’s premiers to respond collectively to the trade threat, and we are not seeing that,” he said.
Dave Earle, President & CEO of the BC Trucking Association (BCTA), said that mitigating impacts should be secondary. “Government work needs to focus on addressing the tariffs [themselves].”
“[Workers] may leave the industry if there is no work, but there’s no real alternative to the movement of goods,” Earle said. He added that upskilling programs are not an option for BCTA workers, as their labour is an indicator of “overall activity.”
Premier Eby has outlined the strategy B.C. will take to address the crisis: respond, strengthen, and diversify. He said that B.C. would work with the federal government and other provinces to “retaliate against these unfair, unnecessary, unjustified, and costly tariffs for people across North America.”
As part of the response, B.C. is “reviewing non-tariff measures that may be available for British Columbia to reinforce how intertwined we are between the United States and Canada, and how our shared prosperity is on the line here,” said Eby.
The “strengthen” component includes deepening B.C.’s partnerships across Canada to remove internal trade barriers and expedite the extraction of resources such as minerals and metals.
Lastly, B.C. plans to diversify with other countries who are also experiencing economic threats from the U.S.
“We have trade relationships — strong trade relationships — across the Pacific, with many different countries,” said Eby. “This is an opportunity for us to deepen and strengthen those relationships, and reduce our dependence on the United States.”
Despite negative projections, Premier Eby remains optimistic.
“We have the people with the skills, we have the resources, we have the geography to take this threat and turn it into an opportunity to grow prosperity for everyone in this province and everybody in this country,” he said.
