B.C.'s finance minister says retaliatory tariffs could target Republican 'red states'

B.C.'s finance minister was among those watching Donald Trump's inauguration closely as uncertainty looms over threatened tariffs.

VANCOUVER — British Columbia’s finance minister says the province could focus on Republican-held states as it responds to the threat of U.S. tariffs on Canadian goods that President Donald Trump suggests could start on Feb. 1.

Minister Brenda Bailey told reporters Monday that targeting “red states” for possible retaliatory tariffs could be one of the “strategic ways” to influence people in Trump’s own party.

“The impact that making these decisions will have directly on Americans is going to be part of that analysis as well, and has been,” she said.

Bailey said despite Trump’s decision not to impose his threatened tariffs on his first day in office, “uncertainty looms” and the province must be prepared to respond if the tariffs materialize.

“We can expect this uncertainty and instability to continue throughout the Trump presidency. We must be prepared to respond, to strengthen our economy and to diversify our trading relationships,” she said.

Trump said on Monday evening that he was looking at Feb. 1 as the day he plans to slap Canada and Mexico with 25 per cent across-the-board tariffs, and he announced last week a new government department would be created called the External Revenue Agency to collect the funds.

Earlier in the day, Bailey said tariffs would be devastating for people on both sides of the border and added that it’s “good news” B.C. has more time to make its case directly to the new administration and U.S. decision-makers.

B.C. Premier David Eby is expected to be part of a contingent of Canadian premiers planning a trade mission to Washington on Feb. 12.

The provincial government has estimated that the tariffs and a similar response from Canada would cumulatively cost B.C. $69 billion in lost GDP if the trade war lasts the entire four years of the Trump presidency.

Eby said last week that a Canadian response to the Trump tariffs should strive to get the attention of people in “Republican states that may otherwise be inclined to support these tariffs.”

He cited as an example “targeting orange juice to get the attention of the Floridians.”

This report by The Canadian Press was first published Jan. 20, 2025.

Ashley Joannou, The Canadian Press