Trump's promised tariff raises concern in B.C.

B.C. braces for promised tariffs The next U.S. president has threatened a 10-per-cent tariff on imported products. What will that mean for B.C.'s economy?

British Columbia manufacturers are bracing for a hefty tariff on all products being shipped south of the border.

Donald Trump's victory in Tuesday's U.S. presidential election comes after a hard-fought campaign that included a promise to enforce a minimum 10 per cent tariff on all American imports.

The Surrey Board of Trade said the U.S. is the top customer for many local manufacturers, and that added fees will impact the business community's bottom line, similarly to what happened during the first Trump presidency.

“We did see a lot of our GDP and economic development go down,” said Jasroop Gosal, policy research manager for the board.

“But we do believe that there is hope, that there is potential for better trade deals to come as a result of this, as long as both parties are willing to work together.”

Gosal said the business community has faced an array of tariffs from the previous two U.S. administrations, and is prepared to work with the provincial and federal governments to find a mutually beneficial solution that will ensure market stability.

A recent Canadian Chamber of Commerce report suggests the proposed tariffs would result in around $30 billion per year in economic costs to Canada.

Around 77 per cent of all Canadian exports go to the U.S., including the majority of those coming from B.C.

The tariffs are intended to bolster American manufacturing and the job market. Experts on both sides of the border told CTV News on Wednesday the tariffs could have that effect, while also causing greater inflation.

“It's terrible for American consumers,” said Ross Hickey, an economics professor at the University of British Columbia Okanagan. “Because American consumers are going to eat a lot of that increase in the tariff through an increase in prices.”

Manufacturing has declined in the Western world over the last three decades, Hickey said, and been replaced with labour in parts of Asia. With the proposed 10 per cent tariff, Trump is signalling to voters and policymakers that he’ll work to address a lack of economic opportunities within the U.S., he said.

But manufacturing doesn't shift overnight, Hickey added, and international manufacturers will have to adjust to the duties in the meantime.

The economist argued Canada's natural resources, such as energy and lumber, should be seen as a welcome asset to the U.S., helping to power domestic manufacturing and supply building materials for the homes needed to address the country’s affordability crisis.

“Could this be a case where the United States is going to cut their nose off to spite their face?” said Hickey, adding that Canada would also “definitely suffer.”