B.C. Premier David Eby said Wednesday lobbying efforts in the United States against tariffs appear to be making a difference after Canada appears to have dodged additional tariffs beyond those already announced, but Eby and other members of his cabinet also warned of uncertainty and economic hardship ahead.
"It's clear that our work to date has been finding traction," Eby said in pointing to Republican lawmakers from Kentucky and Alaska. He said they have started to push back against tariffs and annexation threats by Trump. "Our resolve and our swift opposition to these tariffs is having an impact and we cannot let up now," Eby said.
He made these comments while speaking in the legislature on Bill 7 and shortly after U.S. President Donald Trump imposed a 10 per cent baseline tariff on all imports to the United States that do not comply with the free trade agreement between the United States, Canada and Mexico.
But if Trump spared — for now — his country's two most important trading partners, Canada will not escape existing tariffs on steel and aluminum and tariffs on automobile and automobile parts that come into effect 9 p.m. PST. Countervailing duties on B.C. forest products also remain in effect.
Housing Minister Ravi Kahlon said he did not expect Trump to announce that he would build an "economic wall" around the United States.
"This is going to have impacts on us, regardless of what the number or the percentage of tariff is," he said. "When the U.S. sneezes, Canada catches a cold. If they do go into a recession, which some economists have predicted, it will have some impacts on Canada."
Kahlon said earlier that uncertainty remains.
"It was hard to make sense of President Trump's speech," he said. "We have seen some information come out and we are analyzing that now."
B.C. Forests Minister Ravi Parmar also pointed to this uncertainty.
"I think it's bit early to say that we have dodged the bullet," Parmar said. "I think it is important for myself, for the premier and others to now go and get up to speed in terms of what's happening.
"There is still more time for another (Trump) tweet or something."
Conservative Party of B.C. Leader John Rustad said he was very pleased Canada is not facing these additional tariffs.
"I was a little surprised when I saw that, particularly when you look at the tariffs that are in place with so many other countries," he said. "Having said that obviously, we are in a long trading relationship with the Americans, but...it still doesn't change the situation that British Columbia is very vulnerable."
These comments appear against the backdrop of the legislature debating Bill 7.
While Eby last week announced his government would change parts of the bill after a broad coalition consisting of business leaders, legal scholars and the political opposition had expressed concerns about excessive cabinet powers, Kahlon defended pushing ahead with the legislation.
"We have to have the tools available," Kahlon said. "This still creates uncertainty for us that we need to navigate and certainly we will be analyzing what this means in the short term. But in the long term, in the medium term, we have a lot of work still to do."
Rustad questioned why government is continuing the debate on Bill 7, which he said should be withdrawn.
"I wonder why we are in the legislature today debating Bill 7 to give this government extraordinary powers," Rustad said. "What is the purpose of doing that when we are not facing these tariffs. This is simply a power grab by this government."
Trump's tariff announcement and the debate about whether to move ahead with Bill 7 coincided with the news that two credit-rating agencies have downgraded B.C.'s credit-worthiness. S&P Global downgraded British Columbia’s rating for the fourth time in four years. The agency downgraded B.C.'s long-term credit rating to A+ from AA- and its short-term credit rating to A-1 from A-1+. Moody’s Ratings also downgraded aspects of B.C.'s credit.
Both agencies cited B.C.'s rising debt and deficit.
"The downgrade is a reflection of a structural deterioration in British Columbia’s credit profile, characterized by larger deficits and higher levels of debt than previously projected," Moody's said in its assessment.
The latest provincial budget pegs the provincial deficit at a record-setting figure of almost $11 billion.
B.C. Finance Minister Brenda Bailey said this development "was a strong likelihood given the complex circumstances we find ourselves in with the high risk of tariff impacts."
She added that B.C.'s economy remains diversified and resilient and Kahlon said B.C. still has "fiscal strength" to respond to the tariffs. But he also echoed Bailey when he said the government is reviewing every single program.
"(We) have a huge fiscal problem in this province," Rustad said. "There is no question that this government has been completely fiscally irresponsible, putting our children at risk, putting this province at risk."
