TERRACE, B.C. – A new 35% tariff on Canadian goods, ordered by U.S. President Donald Trump and effective today, is sending shockwaves through the Northwest B.C. economy, with key local industries like forestry and aluminum bracing for significant disruption.
The White House announced the tariff hike late Thursday, raising the rate from 25% and citing Canada’s alleged lack of cooperation in stopping illicit drug trafficking. The move comes after months of escalating trade rhetoric and threats from the U.S. administration.
Prime Minister Mark Carney called the action disappointing and disputed the rationale, stating that Canada accounts for only 1% of U.S. fentanyl imports and has invested heavily in border security. In his statement, the Prime Minister specifically identified lumber, steel, aluminum, and automobiles as sectors that will be hit hardest—a list that directly impacts thousands of jobs across the Skeena region.
The new tariff places a cloud of uncertainty over the region’s two largest industrial employers: the forestry sector and Rio Tinto’s aluminum smelter in Kitimat. For the numerous sawmills and logging contractors throughout the Northwest, a 35% duty on lumber exports to the U.S. could be devastating. Similarly, the aluminum sector, a cornerstone of Kitimat’s economy, now faces a major challenge in its largest market.
Adding to the concern, the new rules also impose a 40% tariff on certain goods from other countries that are transshipped through Canada, a measure that could impact operations at the Port of Prince Rupert.
President Trump has linked the trade action to other political issues, including his frustration with the bilateral trade deficit and Canada’s recent announcement that it will recognize a Palestinian state.
While some goods remain protected under the United States-Mexico-Canada Agreement (USMCA), which is scheduled for renegotiation next year, the immediate future for many of the Northwest’s primary exports is now uncertain. As the region finds itself at the centre of a major international trade dispute, local businesses and workers are anxiously waiting to see the full impact of the new tariffs.
