New tools allow B.C. to rapidly respond to U.S. tariffs

Press Release

March 13, 2025

VICTORIA – Legislation has been introduced to strengthen B.C.’s ability to respond quickly to threats of tariffs imposed on Canada by the United States, to grow a more self-reliant economy, and to defend workers and businesses.

“President Donald Trump doesn’t care about the devastating effect his chaotic actions are having on Canadian and American families alike,” said Premier David Eby. “In the face of escalating attacks on our sovereignty that have included threatening to erase the Canada-U.S. border and taking our water, we are not backing down. We are arming ourselves with the tools we need to respond swiftly, break down trade barriers within Canada and strengthen our economy.”

If passed, the economic stabilization (tariff response) act will enable the B.C. government to be nimble in its response, giving government time to develop more long-term responses, as the threat of tariffs evolves rapidly and unpredictably. A focus on expanding interprovincial trade and moving procurement away from American vendors will help encourage greater reliance on goods and services made in Canada and increase opportunities for people and businesses in B.C.

The act would give cabinet a strong set of targeted tools to fight back against Trump’s tariffs and counter the negative impact of tariffs on British Columbians and Canadians. If passed, the bill will allow cabinet to take action in the following ways:

remove or amend barriers that impede interprovincial trade;
impose tolls/fees on non-Canadian commercial vehicles using provincial public infrastructure such as highways;
direct public-sector bodies to exclude U.S. suppliers when procuring goods and services; and
temporarily make changes to cut red tape and regulations to take fast action to defend the B.C. economy from challenges brought on by continued threats.

“People throughout our province and country are angry at this unprovoked, unjust attack from our closest international friend and ally,” said Niki Sharma, Attorney General. “The economic stabilization (tariff response) act will help strengthen our local economy and our ties to other provinces and territories, uniting us under the Team Canada banner. We continue to hope for this rift with the U.S. to be healed, even as we use our full legal authority to protect the people and interests of British Columbia and Canada.”

The act provides temporary authority to cabinet and will automatically be repealed by 2027 at the latest. The legislation also includes guardrails. For example, it does not allow government to override permitting processes or First Nations consultation. If passed, most of the legislation would take effect upon royal assent.

Learn More:

Government has responded to President Trump’s economic war with several targeted measures, including:

pulling all American Liquor from BCLIQUOR stores: https://news.gov.bc.ca/releases/2025PREM0032-000187
increasing the Canadian biofuel content in B.C. transportation fuels https://news.gov.bc.ca/releases/2025ECS0008-000147

To learn more about B.C.’s response to U.S. tariffs, visit: https://www2.gov.bc.ca/gov/content/employment-business/tariffs

A backgrounder follows.

Contacts:

Office of the Premier
Media Relations
premier.media@gov.bc.ca

Ministry of Attorney General
Media Relations
778 679-7288

BACKGROUNDER

New legislation helps fight U.S. tariffs

The economic stabilization (tariff response) act is tailored to the specific needs of B.C. and provides government with the tools and flexibility it needs to respond to the rapidly evolving threats from U.S. President Donald J. Trump.

The legislation allows government to:

1. Temporarily modify the application or effect of B.C. laws and regulations to defend B.C. from challenges brought on by the continued tariff and sovereignty threats.

The legislation includes broad, time-limited response powers authorizing cabinet to modify the application or effect of enactments.
This could be for the purpose of addressing challenges or anticipated challenges to the province arising from the actions of a foreign jurisdiction, as well as supporting interprovincial trade and the economy of B.C.

2. Reduce or eliminate barriers to interprovincial trade

The legislation creates time-limited authority for cabinet to act quickly to reduce these barriers and create the space to develop longer-term or more permanent solutions.
The three main components in this part of the legislation include:
- the authority to reduce or eliminate the barriers;
- the authority to address implementation and administration of the changes; and
- broad regulation-making authority for flexibility and fine tuning.
While this legislation does not require reciprocal actions in other provinces and territories, it does include authority for cabinet to choose to make that a requirement, if needed.
This legislation will not apply to occupations covered under the Labour Mobility Act; work to strengthen interprovincial labour mobility is being done separately with other provinces, territories and the federal government.
Other work underway through other channels includes:
- mutual recognition to reconcile internal trade barriers;
- reviewing and removing Canada Free Trade Agreement exceptions; and
- strengthening interprovincial labour mobility.

3. Impose tolls/fees on specified vehicles using provincial public infrastructure such as highways

This bill enables a variety of tolls, fees or charges for use of public infrastructure via a subsequent regulation.

4. Provide procurement directives to public bodies

The legislation gives time-limited authority for cabinet to issue directives to public-sector bodies about limiting purchases from the U.S., and buying goods and services from jurisdictions that aren’t threatening or imposing tariffs on Canada.
Defining what constitutes a public-sector body relies on the Budget Transparency and Accountability Act, coupled with regulation-making authority to add or exclude organizations from the scope
In general, it applies to 29 Crown corporations.
The bill includes immunity and indemnity provisions for good-faith compliance with any such procurement directive.
It includes broad authority to make directives and regulations efficiently and with necessary exceptions.

The interprovincial trade provisions will be brought into force by regulation, while the rest of the legislation would come into force upon the bill receiving royal assent, enabling cabinet to make decisions to use this legislation.

The legislation has been designed to work with actions that may be taken by other provinces, territories and the Government of Canada, as well as any other agreements B.C. might enter into.

It cannot be used to override environmental assessments or permitting requirements for natural-resource projects, or obligations to consult with Indigenous Peoples. It also requires regular reports be made to the legislative assembly.

The bill contains a sunset clause that repeals the legislation by May 28, 2027, though cabinet could repeal it earlier by regulation.

Contacts:

Office of the Premier
Media Relations
premier.media@gov.bc.ca

Ministry of Attorney General
Media Relations
778 679-7288

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