Even though B.C. and the rest of the country seemingly dodged a tariff bullet Wednesday, the NDP government says it still needs to remain vigilant.
“The challenge we have is that this continues to change hour-by-hour, day-by-day and anything can still happen,” said Ravi Kahlon, the chair of the government’s cabinet committee on tariffs.
The government pushed ahead with its plan for legislation allowing it to respond to the threat of tariffs, including tolling commercial trucks heading to Alaska.
Premier David Eby, citing economic troubles already happening as a result of the trade war, advocated for Bill 7 during its second reading Wednesday.
“We can see already the impact on stock market, the impact on consumer confidence, the impact on prices,” he said.
B.C. Conservative Leader, John Rustad, calls the legislation overreach, especially given Canada escaped the reciprocal tariffs announced by the U.S. president Wednesday.
“I wonder why we are in the legislature debating Bill 7 to give this government extraordinary powers. What is the purpose of doing that when we are not facing these tariffs?” asked Rustad. “This is simply a power grab by this government regarding the tariffs. I’m very pleased that were not facing these additional tariffs like many other countries are.”
Meanwhile, the softwood lumber sector – already subject to 14.5 per cent duties and fearing catastrophic consequences if new tariffs were imposed – sighed some relief.
Forestry Minister Ravi Parmar says he’s hopeful Donald Trump got the message about the harm levies on the industry could cause Americans.
While new tariffs were not imposed, B.C.’s credit rating got its fourth straight downgrade under the NDP Wednesday, with Moody’s and S&P dropping its score, in light of a growing deficit and no plans to reach a balanced budget.
Finance Minister Brenda Bailey, says she anticipated the downgrade, blaming the tariff threats – at least in part.
“We did know this was a strong likelihood given the complex circumstance we find ourselves in with the high risk of tariff impact,” said Bailey.
Eby is meeting Thursday morning with his fellow premiers and Prime Minister Mark Carney, to strategize next steps in the trade war.
