How the B.C. government can directly respond to U.S. trade threats is relatively limited, largely because the province cannot set tariffs.
But new provincial legislation tabled this month could allow B.C. to tax Alaska-bound trucks that enter the province from Washington state, Premier David Eby told reporters last week.
Supply chain expert Samuel Roscoe, an economics professor at the University of British Columbia, told BIV the provincial government would have a hard time taxing any goods in transiting trucks, so it would have to implement a road transport tax.
According to the Ministry of Transportation and Transit, the legislation does not immediately impose fees on Alaska-bound trucks.
"It just gives BC the tools to do so down the road if [U.S. President Donald Trump] continues to escalate his threats towards BC and Canada. This is not something British Columbia wants to do, but this tool is available if the U.S. does not back away from their unjust tariffs," the ministry told BIV.
Trucking association sees harm in the mere threat of tolls
Opposing such legislation is Dave Earle, president and CEO of the BC Trucking Association.
“We are moving away from taxing goods to taxing a mode of transportation and that’s a red line for us,” said Earle, who fears Trump administration retaliation for the policy and wonders about the impact it could have on the 26,000 truckers in this province.
“Do we really want to start going down that road?” said Earle.
The association estimates only 400 to 500 trucks pass into Alaska from B.C., via Yukon. But the number of trucks originating from Washington state is much lower given trucks from the Midwest cross into B.C. via Alberta, said Earle.
Even Eby’s threats are harmful, said Earle, adding “the only thing business hates more than taxes and fees is uncertainty.”
Electricity exchanges with California won’t stop
One matter that is less certain is Eby’s commitment not to restrict electricity sales to the U.S., namely California.
Eby said B.C. sells excess hydroelectricity in the winter and buys California’s solar and wind energy in the summer, when hydro dams are depleted.
The trade-off saves B.C. money, according to Eby and confirmed by data, says University of B.C. economics professor Werner Antweiler.
“Essentially, we buy cheap electricity in the summer and export expensive electricity in the winter. So even though we have been importing large volumes of electricity BC Hydro is able to still generate significant value for B.C. through this type of trading,” Antweiler told BIV.
Since September 2022, B.C. has been a net importer of electricity from the U.S., although Eby said the province is energy self-sufficient.
“There is thus little to be gained if B.C. imposed an export surcharge. First, the effect on U.S. states would be slow because retail electricity prices are regulated, and second, it would mostly hit ‘blue’ (Democrat) states,” said Antweiler.
U.S. coal shipments could be taxed, alcohol ban expanded
Another potential card Eby could play is to impose a tax on U.S. thermal coal shipments through Deltaport.
This is something that would require federal government approval, said Eby, who added that he has advocated for it.
Eby said he has heard concerns from longshore workers.
Westshore Terminals is the primary company handling this coal.
Loading volume for 2025 as a whole is projected to be approximately 26.5 million tonnes, at an average loading rate for the year of $13.55 per tonne—a $359 million operation.
Westshore Terminals did not respond to BIV for comment.
The provincial government’s biggest move to date has been to restrict the sale of U.S. alcohol products from Republican states in B.C. government liquor stores.
Last week, Eby expanded the ban on the sale of all U.S. liquor products on government store shelves after initially only targetting Republican states.
