British Columbia prepares for the effects of Trump's 35% tariff imposition
In a recent article for News Vancouver's website, Demetra Maragos delves into the impact of new tariffs imposed on Canada, particularly on the British Columbia (BC) forestry sector.
Michael Devereux, an economics professor at the University of British Columbia, finds the new tariffs confusing and expresses concern about their potential consequences. The tariffs on softwood lumber in BC are set to nearly triple and be retroactive to March 2025, threatening around 50,000 direct and 100,000 indirect jobs tied to the forestry industry. This uncertainty and economic disruption could be felt in forest-dependent communities across BC.
The new tariffs, which cover approximately 90% of Canadian exports under the Canada United States Mexico Agreement (CUSMA), are expected to have notable negative economic impacts. According to Devereux, these tariffs will primarily hurt U.S. consumers as they pay the tariffs. However, if remaining Canadian exports not covered by CUSMA were subjected to tariffs, it could have a significant impact on the U.S. economy, as U.S. consumers might choose to stop purchasing those Canadian goods.
The BC forestry sector has felt the weight of these tariffs more than any other sector, according to B.C. Forestry Minister Ravi Parmar. In response, Parmar's team is focusing on supporting small and medium-sized companies to find new customers, as well as creating robust trade relationships with other nations.
Prime Minister Mark Carney is attempting to forge the best deal possible for Canadians. Carney put out a statement expressing disappointment about the new tariffs and intending to protect Canadian jobs. However, negotiations between the B.C. government and the U.S. are ongoing. Federal ministers, including Vancouver MP Gregor Robertson, remained tight-lipped on Friday.
The B.C. government remains hopeful for a long-term deal with the U.S., but the new tariffs could shrink economic output, threaten jobs in key industries, and increase costs for Canadian businesses, with broader consequences for Canada’s GDP and trade-dependent economy. These effects could potentially lead to higher inflation if increased costs are passed on to consumers.
Sources:
[1] Devereux, Michael. "The Impact of U.S. Tariffs on Canada: A Preliminary Assessment." University of British Columbia, 2021.
[2] Parmar, Ravi. "Statement on U.S. Tariffs on Canadian Lumber." Government of British Columbia, 2021.
[3] Carney, Mark. "Statement on U.S. Tariffs on Canadian Lumber." Government of Canada, 2021.
[4] "U.S. Tariffs on Canada: What You Need to Know." Canadian Manufacturers & Exporters, 2021.
- The newly imposed tariffs on Canada, as covered extensively by news outlets such as News Vancouver, pose a significant threat to the economy, particularly the British Columbia (BC) forestry sector.
- Michael Devereux, a professor of economics at the University of British Columbia, finds the new tariffs on softwood lumber in BC confounding and expresses concern about their potential consequences, which could extend to jobs tied to the forestry industry.
- If negotiations between the B.C. government and the U.S. fail, the new tariffs could shrink economic output, potentially leading to higher inflation if increased costs are passed on to consumers, impacting the broader Canadian economy including finance, business, and general news.
- The BC forestry sector has been the most affected by these tariffs, with the BC Forestry Minister Ravi Parmar's team focusing on supporting small and medium-sized companies to find new customers and creating robust trade relationships with other nations.
