What the B.C. budget says about U.S. tariffs

Despite across-the-board tax increases and thousands of public sector job cuts, B.C.'s budget is still filled with red ink.

U.S. President Donald Trump’s tariffs loomed large over Tuesday’s presentation of the B.C. budget, which was unveiled in the context of economic instability created by the trade war.

The budget document—in a seeming nod to the potential volatility of the tariff situation, contains a list of “U.S. tariff assumptions” that were incorporated into the province’s plan.

Those include:

• 35 per cent on all Canadian exports that are not compliant with CUSMA, with exceptions for reduced rates of 10 per cent on energy and potash
• 50 per cent on steel and aluminum products and derivatives
• 50 per cent on copper products and derivatives
• 25 per cent on upholstered furniture, kitchen cabinets and vanities
• 10 per cent on softwood timber and lumber, which is on top of existing duties

“B.C. is less exposed than other provinces, with nearly half of all goods exports going to non-U.S. destinations,” the budget document says. “Despite being less exposed to the U.S. than other provinces, B.C.’s outlook for international trade remains uncertain.”

The finance ministry said the budget will be updated “as the situation evolves.”

The budget projects $85.5 billion in revenue and $98.8 billion in spending, sending the deficit ballooning to $13.3 billion.

Full budget coverage:

• B.C. hikes tax rate as budget delivers record $13-billion deficit
• 15,000 public sector jobs to be cut over 3 years
• Projects put on pause as government ‘re-paces’ capital plan
• Here’s which taxes are increasing