British Columbia Premier David Eby said Canada had to approach Donald Trump’s plan to impose a 25 per cent U.S. tariff on Canadian goods from a position of strength, as business, trade and community organizations called for quick action on the trade threat.
Eby said premiers and Prime Minister Justin Trudeau would meet this week to discuss “our strategic approach” to the U.S. president-elect’s plan to impose the tariff on Canadian and Mexican imports immediately after his inauguration on Jan. 20 unless action is taken to stem the cross-border flow of migrants and illegal drugs.
The B.C. premier made the comments Tuesday in a speech to the annual convention of the B.C. Federation of Labour in Vancouver.
In a post on his Truth Social platform, U.S. president-elect Donald Trump has threatened to impose a 25 per cent tariff on all goods from Canada and Mexico until both countries stop what he called the ‘invasion’ of undocumented migrants and drugs crossing the U.S. border.
“Obviously, this will be devastating to workers on both sides of the border,” he said. “Both in the U.S. and in Canada, the impact on families will be profoundly significant.”
Canada and the U.S. have long been top trading partners on imports and exports, and the strength of this relationship puts Canada in a solid position when it comes to Trump’s tariff threat, Eby said.
“We have more in common with Americans than what separates us,” he said. “We buy more American stuff than France, than China and Japan and the United Kingdom combined. So, we are negotiating, I believe, from a position of strength.”
Eby acknowledged improvements could be made on Canada’s border, especially when it comes to policing contraband and illegal drugs.
“We’ve called repeatedly, for example, for port police to ensure what comes into B.C. is not contraband, is not illicit drugs or precursor chemicals,” he said. “These are things that we can do to make life better here in B.C., as well as respond to concerns that have been raised south of the border.”
Trump issued a statement on social media on Monday saying Canada and Mexico had the power to solve their border issues, which he called a “long-simmering problem.”
B.C. business leader calls for ‘Team Canada approach’
B.C. business organizations called on the provincial and federal governments to immediately address Trump’s tariff plan, which they said will hurt businesses.
The proposal would have “significant consequences” for B.C. businesses of all sizes and would harm communities and workers across the province, said Fiona Famulak, the president of the B.C. Chamber of Commerce and its chief executive officer.
The B.C. Lumber Trade Council said the proposed tariff would hurt U.S. consumers and homebuyers by driving up the cost of building materials from Canada, while the Greater Vancouver Board of Trade said the U.S. was B.C.’s most important trading partner, accounting for 54 per cent of the province’s commodity exports in 2023.
“It is imperative that we engage constructively with our U.S. counterparts to advance our collective interests,” said Bridgitte Anderson, board of trade president and CEO.
“This should act as a wake-up call to all levels of government that a new Team Canada approach is required.”
She said some of B.C.’s top exports to the U.S. are natural gas, softwood lumber, agricultural products and minerals and metals.
Opposition B.C. Conservative Leader John Rustad called for the immediate recall of the B.C. Legislature to provide funding to secure borders to stop the flow of illegal drugs and migrants.
B.C. finance minister highlights trade opportunities in Asia
Brenda Bailey, B.C.’s new minister of finance, said potential tariffs are concerning, but opportunities exist to improve relations with major trade partners such as Japan and South Korea.
“The interest in British Columbia commodities in Asia is very, very high,” Bailey told CBC’s On the Coast.
“The United States will always remain important, but British Columbia is uniquely well-placed to really, really enhance our trade relationships elsewhere as well.”
B.C. government data says the province’s exports to the U.S. in the first half of 2024 were worth $16.9 billion, down 1.1 per cent compared to the same period last year.