B.C. Conservatives pitch ‘carbon tax’ on coal as tariff threats loom over struggling lumber industry

With the possibility that punishing tariffs will be imposed in mere days, B.C. politicians are bracing for the impact on an already struggling industry.

Softwood lumber is vital to B.C.‘s economy and the industry is already struggling, making it particularly vulnerable if punishing across-the-board tariffs are imposed on Canadian goods in the coming days.

Existing duties of 14.5 per cent imposed by the U.S. are expected to double soon.

“Even without Donald Trump’s tariff, a thirty per cent tariff or duty on our industry is going to be devasting for it,” said Brian Menzies, the president of the Independent Wood Processors Association on Monday.

Last week, Forests Minister Ravi Parmar said combined U.S. duties and tariffs on Canadian softwood lumber could increase to more than 50 per cent if the U.S. president makes good on his threat.

With the March 1 deadline for Trump’s tariffs looming, BC Conservative leader John Rustad pitched the idea Monday of imposing carbon taxes on thermal coal exported by the United States through the Port of Vancouver.

“To use it as leverage to actually get the Americans to the table, to do a deal on softwood lumber,” said Rustad, explaining why he thinks this could be effective.

During question period Monday, Premier David Eby noted foreign exports and rail are under federal jurisdiction, but said he welcomes Rustad’s feisty approach towards the province’s American neighbours – contrasting it with the BC Conservatives’ previous calls for diplomacy.

“There are big challenges with a federally regulated industry of railways and ports, but I am happy to work with the member against unfair tariffs,” said Eby.

On Monday, Trump said the 25 per cent tariffs on all Canadian goods are indeed proceeding next Tuesday.

“The tariffs are going ahead, on time, on schedule,” he said.

The increase to softwood lumber duties was supposed to be unveiled last week, but that too remains up in the air. Parmar didn’t mince words in his frustration with the growing uncertainty.

“It could be any time,” he said Monday.

Softwood lumber has been a friction point between Canada and the United States for decades.

The United States has applied anti-dumping and countervailing duties on softwood products, while Canada has taken its arguments to the World Trade Organization and challenged the duties under both NAFTA and the Canada-United States-Mexico Agreement.

With files from The Canadian Press