British Columbia Finance Minister Brenda Bailey presented a stark warning on Thursday, outlining the potentially devastating economic consequences of a trade war with the United States. Bailey highlighted the unprecedented scale of potential tariffs and projected a $69 billion loss for B.C.'s economy by 2028 if implemented. The government also anticipates declining investment, falling corporate profits, and a significant increase in unemployment. Premier Eby affirmed his commitment to supporting the province through this crisis, directing his cabinet to prepare for the potential fallout. He emphasized the need for a united front and stressed that all provinces must share the burden of any retaliatory measures against the United States.
British Columbia government officials warn that a trade war with the United States would severely damage the local economy. Finance Minister Brenda Bailey presented alarming figures on Thursday, stating that tariffs could reach unprecedented levels in modern history. While the precise scope and amount of potential tariffs remain uncertain, B.C. has prepared a comprehensive analysis assuming the tariffs remain in effect for the duration of Trump's presidency and Canada retaliates proportionally.
Bailey emphasized that the U.S. is Canada's largest trading partner, highlighting the significance of this economic relationship. She projected a staggering $69 billion loss for B.C.'s economy by 2028 if tariffs are implemented. Investment would decline, with corporate profits plummeting by billions in 2025 and 2026. Moreover, the unemployment rate is predicted to surge to 6.7 percent in 2025 and could further escalate to 7.1 percent by 2026. National Bank, citing a 2019 Bank of Canada estimate, reported that the potential impact on Canadian GDP from a 25 percent tariff could surpass any previous recession, excluding the temporary setback caused by the COVID-19 pandemic. Premier Eby expressed his commitment to rallying together and supporting one another during this economic crisis, urging a united front against the looming threats. He directed his cabinet ministers to prepare for the potential fallout from Trump's proposed tariffs. Eby acknowledged the gravity of the situation, recognizing that this mandate letter release differs significantly from previous years due to the impending tariff crisis. He reassured the public that British Columbia possesses the necessary resources, market access, and most importantly, a dedicated workforce to overcome these challenges. The government plans to prioritize economic growth and wealth creation to support robust public services for working families. This strategy includes accelerating permit approvals for major projects that generate jobs and revenue. Economic and natural-resource ministers will collaborate with industry, First Nations, and communities to achieve this objective. Eby emphasized the importance of a sound fiscal foundation in navigating these turbulent times, stating that responsible use of public funds is crucial for protecting essential services and addressing pressing concerns faced by citizens. He joined Canada's other premiers in a meeting with Prime Minister Justin Trudeau to discuss a coordinated response to the potential tariffs. Most premiers agreed that all options should be considered for economic retaliation. Eby stressed the need for a united front, asserting that if tariffs impact B.C., they must impact all provinces across the country. He emphasized that B.C. and Alberta cannot be expected to bear the sole burden of retaliating against the United States
TRADE WAR TARIFFS ECONOMY BRITISH COLUMBIA CANADA UNITED STATES INVESTMENT UNEMPLOYMENT PREMIER EBY FINANCE MINISTER BAILEY
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