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

After months of escalating threats, President Donald Trump imposed global tariffs on 180 countries on April 2 and then paused them for 90 days a few days later. This uncertainty is having a devastating effect on the global economy.

Nothing changes for Canada. Unjustified tariffs remain on Canadian steel, aluminum, automobiles and many goods not covered under the CUSMA free trade agreement. And our forestry and softwood lumber industry are facing devastating new duties.

Now is not the time to let our guard up. Canada has responded with counter-tariffs designed to compel the U.S. to remove their tariffs as soon as possible. B.C. is also responding in areas we control, like liquor and purchasing.

Team Canada response

• B.C. and Canada are responding firmly and forcefully to US tariffs – as a united front – with tough counter-tariffs and other measures.
• Leaders across Canada and B.C. continue meeting with American decision-makers to advocate on behalf of Canadians about the harm tariffs bring to families on both sides of the border and defend our sovereignty.
• Our strategy is working. American legislators and businesses are stepping up to oppose Trump’s tariffs on Canada.
• We are not waiting for Washington. 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.

Timeline

• Ongoing: President Trump frequently makes escalating threats to redraw borders, take Canadian water and make Canada the 51st state.
• January 20: President Trump announced tariffs on Canada. The U.S. tariffs were set to go into effect February 4 but were paused for 30 days to allow for further discussions.
• February 11: the President announced 25% tariffs on steel imports from several countries, including Canada, starting March 12.
• February 12: Premiers from all provinces and territories travelled to Washington D.C. to make our case to White House officials and American decisions makers.
• February 24: the President confirmed tariffs on all Canadian goods would go into effect March 4 and said there was nothing Canada could do to avoid it.
• March 3: U.S. Department of Commerce announced it intends to more than double anti-dumping duties imposed on Canadian softwood lumber exporters.
• March 4: U.S. tariffs and Canadian counter measures went into effect.
• March 6: the President once again paused tariffs on some goods until April 2. About 62% of Canadian goods were still affected.
• March 12: U.S. tariffs on steel and aluminum went into effect.
• April 2: The President announced global tariffs on 180 countries around the world.
• April 3: U.S. tariffs on Canadian automobiles went into effect.
• April 4: The U.S. announced plans to more than double softwood duties on Canadian producers to 34.45%.
• April 9: The President paused global tariffs for 90 days. Tariffs on Canada, Mexico and China remain. Prime Minister Carney confirmed Canada and the U.S. will negotiate a new economic and security relationship after the federal election.

Learn more

• Canada’s engagement with the U.S. | 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.

Canada counter-tariffs in effect now

• 25% counter-tariffs on $30 billion in U.S. goods went into effect March 4 to respond to Trump’s tariffs.
• 25% counter-tariffs on $29.8 billion in U.S. steel, aluminum and other products like tools, cast iron and computers effective March 12 to respond to Trump’s steel tariffs.
• 25% counter-tariffs on non-CUSMA compliant vehicles and parts from the U.S. effective April 3 to respond to Trump’s auto tariffs.
• These are initial steps. The federal government is considering all options, including non-tariff measures, to defend against new threats and escalation from Trump.

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’s response to U.S. tariffs on Canadian goods | Government of Canada

B.C. supports Canada's action to impose counter-tariffs on American products. We are taking further action in areas we control, like liquor and purchasing. Our goal is to keep our dollars out of a country that is trying to economically harm Canada.

B.C. counter measures in effect now

• Liquor: BC Liquor removed all American products from store shelves and will stop importing it. Red maple leaf labels have been added to Canadian products to help shoppers support local businesses.
• Procurement: B.C. government, health authorities and Crown corporations will:
  • Buy goods and services from Canada and other countries first
  • Cancel existing U.S. contracts and non-essential subscriptions and software services where viable
  • Avoid non-essential travel to the U.S.
• Tesla: Tesla electric vehicle charging products are not eligible for CleanBC or BC Hydro rebates unless purchased or received pre-approval before March 12.

Other measures underway

• Biofuels content: Require low-carbon biofuels that are added to our gasoline and diesel be produced in Canada instead of the U.S.
• Legislation has been introduced that, if passed, would allow B.C. to further defend jobs and businesses and respond to new challenges quickly:
  • Breaking down inter-provincial trade barriers: Work with Ottawa and other provinces to reduce or eliminate barriers to trade and labour mobility so goods, services and workers can move freely across the country. The legislation would give cabinet authority to act quickly to reduce barriers and create space to develop longer-term or more permanent solutions.
  • Commercial vehicles: Ability to impose tolls/fees on non-Canadian commercial vehicles using B.C. infrastructure such as highways, if needed, to respond to escalating threats.
• We will take additional action if needed.

How this makes a difference

• BC Liquor is one of the largest buyers of alcohol in the world. Removing American liquor from shelves will result in  U.S. manufacturers losing tens of millions a year.

Learn more

• Premier’s statement on tariffs imposed by the U.S. (March 4, 2025)
• Premier announces new measures to defend B.C. from Trump tariffs (March 6, 2025)
• Premier’s statement on removing all U.S. alcohol from BC Liquor stores (March 10, 2025)
• New tools allow B.C. to rapidly respond to U.S. tariffs (March 13, 2025)
• Premier directs government to cancel American contracts wherever viable (April 10, 2025)

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

• Strengthening our economy by accelerating 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.
• 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.

Task forces

Talented people across B.C. are coming together to stand up for British Columbians and help grow a stronger economy.

• 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.
• 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.
• 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.
• 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 accelerating 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.

It is clear we can no longer rely on the United States as a reliable trading partner. 

B.C. is working to diversify trade by finding new international markets for our products and helping businesses reach new customers.

We’re also working with Ottawa and other provinces to reduce internal barriers to trade and labour mobility so goods, services and workers can move freely across the country. These efforts will:

• Help businesses access new markets within Canada
• Lower costs for customers
• Let workers with credentials in one province work anywhere in the country
• Speed up the credential recognition process to get people working faster
• Attract more foreign companies to invest and trade in Canada

We want to hear from you

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

Learn more

• Trade and Invest BC tariff information for businesses
• First Minister’s statement on eliminating internal trade barriers in Canada (March 5, 2025)
• Premier announces new measures to defend B.C. from Trump tariffs (March 6, 2025)

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
• Canada’s engagement with the U.S. | Government of Canada

Get guidance navigating the new trade landscape and finding new markets to help your business stay competitive.

Tariff response programs

• B.C. tariff guidance for businesses provides information on how to get tariff exemptions or reductions by meeting rules under some trade agreements.
• Canada tariff remission process provides eligible businesses exceptional relief from the tariffs imposed as part of Canada’s response.
• Trade and Invest BC is holding information sessions and encouraging businesses to share how tariffs are affecting them to better understand challenges and opportunities in this changing landscape.

Other supports available

• B.C. Small businesses and entrepreneurs provides resources and supports to start, manage and grow your business.
• 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.

Sector-specific supports available

• Buy BC logo program lets eligible businesses apply to use the Buy BC logo on packaging and marketing materials to build customer awareness, increase exposure and expand sales. Sign up today – it's free!
• Agriculture and Agri-food Canada offers a range of programs and services to support innovation, sustainable farming, business development, risk management, trade and market development.
• B.C. business and market development provides tools, information and resources to start, manage and grow a business in the agriculture or seafood sector.
• B.C. manufacturing provides a range of programs and resources to help manufacturers grow and stay competitive.

Get help from a business advisor

• B.C. business advisory service offers free one-on-one consultations with an advisor to provide help accessing resources to start or grow your business, or navigating government programs and funding opportunities.

Access financial supports and relief programs to help stabilize your business and find opportunities to reach new markets.

Tariff response programs

• NEW CRA tax relief for businesses affected by tariffs including temporarily deferring GST remittances and corporate income tax payments.
• NEW BDC Pivot to Grow Loan provides businesses in sectors directly targeted by tariffs or their impact on supply chains with favourably priced loans up to $2 million to help adapt to a new trade landscape.
• NEW EDC Trade Impact Program deploys $5 billion over 2 years to help exporters reach new markets and navigate economic challenges from tariffs including losses from non-payment, currency fluctuations, lack of access to cash flows and barriers to expansion.
• NEW Farm Credit Canada (FCC) Trade Disruption Customer Support program helps alleviate financial challenges through deferred loan payments, support with loan terms, and access to additional credit up to $500,000.
• UPDATED AgriStability provides additional support to farmers managing income losses because of rising costs or bad market conditions due to trade disruptions with the U.S. and China.

Other supports available

• 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 Development Canada helps Canadian companies of all sizes succeed in global markets with trade knowledge, financial solutions, insurance, equity and connections.

Sector-specific supports available

• 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.
• Agritech Development Program helps reduce upfront costs, remove barriers and mitigate the risks to grow your agritech business.

Get help from a business advisor

• B.C. business advisory service offers free one-on-one consultations with an advisor to provide help accessing resources to start or grow your business, or navigating government programs and funding opportunities.

Our priority is to keep workers working – through initiatives like helping businesses reach new markets and accelerating major projects.

But if you or your business is facing job loss or wanting to train for new skills, help is available.

Tariff response programs

• UPDATED EI Work-Sharing Program helps employers and employees avoid layoffs by providing EI benefits to eligible employees who agree to reduce normal hours to share the work with other employees.
• UPDATED Employment Insurance (EI) provides benefits to people who lose their job through no fault of their own, like work shortages or layoffs. Temporary changes remove the one-week waiting period and the requirement to use up severance or vacation payments first.

Employer-led training programs

• 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 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.

Training supports for workers

• WorkBC provides a wide range of free employment services and support online and in-person. Such as 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. Applications will open for Fall 2025 classes this summer.
• Free upgrading and English courses let adults take courses to get a high school diploma, upgrade skills for post-secondary or improve their English.

Sector-specific supports

• Supports for forestry workers include skills training and educational opportunities for new careers.  

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.

Trump’s tariffs are a betrayal of this agreement and the historic bond between our countries.

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, processes in their refineries, and re-sells 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. had one of the most successful economic partnerships in the world. We were 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 robust tariff package in response to unjustified tariffs (March 4)
• Premier’s statement on tariffs imposed by the U.S. (March 4, 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

• Budget 2025: Defending B.C. against impact of U.S. tariffs