British Columbians awoke Tuesday to a new economic reality with its largest trading partner after the Americans imposed wide-reaching tariffs on their northern neighbours early in the day.
“Exposure to U.S. trade varies across the country, and so will the impact,” BMO chief economist Douglas Porter said in a note following the imposition of tariffs.
“B.C. carries a relatively low share of goods exports in its economy, and roughly half of those are destined for markets outside the U.S.”
But he said some industries – particularly forestry – will come under “duress.”
“We expect the economic impact to hit hardest in Ontario and the rest of Central Canada, significantly impacting some concentrated industries in Atlantic Canada and B.C., while dealing a lesser immediate blow in oil-producing provinces,” Porter said.
While most Canadian industries have been slapped with 25 per cent tariffs, the Americans have imposed 10 per cent tariffs on the energy sector.
Meanwhile, the U.S. Commerce Department announced Monday new preliminary anti-dumping duties on Canadian softwood lumber imports of 20 per cent.
Canadian softwood lumber producers already pay 14.4 per cent, on average, in anti-dumping and countervailing duties. The duties won’t become final until August, when final determinations are expected to be made.
B.C. Premier David Eby took aim at U.S. President Donald Trump, saying he has no choice but to respond in kind to a leader who “wants to hurt Canadians.”
Eby, whose government unveils the province’s latest fiscal budget Tuesday afternoon, reiterated prior retaliatory threats, such as pulling liquor products from Republican-led states and prioritizing B.C. products for procurement among Crown corporations, health authorities and other government organizations.
“This is something that we can't do ordinarily because of trade agreements with the United States. We have to treat their products like ours when we're purchasing as a government, otherwise it's a trade violation,” Eby said.
“Well, obviously, all bets are off.”
With a file from Nelson Bennett
