VICTORIA — On the same day British Columbia releases its budget, Canada entered a trade war with its closest trading partner, a fight Premier David Eby says the province and the country will not shrink away from.
Eby interrupted the budget lockup on Tuesday to outline some of the plans his government has to counter the 25 per cent tariffs placed on Canadian goods that threaten to upend the economy.
He said B.C. has all the resources the world needs, including clean electricity, critical minerals and agricultural products, and the best way to respond to the threat from the United States is to grow the economy.
"We're going to make sure that there is support in place for B.C. businesses that enables them to pivot to global and domestic markets here in Canada in response to this threat, as well as for individuals who are affected in industries in the province."
Eby said they'll do everything they can to keep food costs down as the value of the Canadian dollar sinks and they'll ensure that there is food security in the event that U.S. President Trump decides to attack Canada in different ways.
This is a moment to take those attacks and turn it into a source of strength, and it's amazing to see the sense of pride, courage and solidarity from Canadians, Eby told reporters in Victoria.
The government had already announced that it would fast-track 18 mineral and energy projects with about $20 billion to counter the tariffs.
"We're going to do it consistent with our environmental commitments, but we're going to do it a heck of a lot faster," he said.
Eby said multiple tables have been formed to counter the tariffs, including for business, the softwood lumber industry and agriculture.
B.C. Finance Minister Brenda Bailey said Monday that her budget will help brace the province against four years of "uncertainty and disorder" from the United States.
Bailey says Trump's tariffs came "completely out of nowhere" when he announced them last November and they've already changed B.C.'s financial circumstances.
The NDP government has already cancelled its election promise of a $1,000 grocery rebate and frozen some public-sector hiring as it prepares for what Eby has called economic warfare by Trump.
The province goes into the trade war carrying a record deficit forecast of $9.4 billion this fiscal year.
Bailey said she isn't ruling out the province's first 11-figure deficit and she says now is not the time for deep cuts, but to plan for times of uncertainty.
The province's ballooning deficit saw S&P Global Ratings drop B.C.'s credit score last April for the third time since 2021.
Another agency, Moody’s, maintained the province's long-standing AAA credit rating but revised its outlook to negative.
This report by The Canadian Press was first published March 4, 2025.
Marcy Nicholson, The Canadian Press
