B.C. premier ready to use energy exports as bargaining tool amid Trump tariffs

B.C. Premier David Eby speaks about the actions he will be taking to counter U.S. tariffs being imposed on Canada.

British Columbia Premier David Eby says his province is “all in” on a united Team Canada approach to counter U.S. President Donald Trump’s on and off tariffs on Canadians imports, including blocking or taxing electricity from his province headed south.

“I think that it’s absolutely vital that the federal government work with premiers and bring us all along, if possible, but at the end of the day, we’ve got to send a strong message to the Americans,” Eby told CTV’s Question Period host Vassy Kapelos in an interview airing Sunday.

“I’ll never put another premier’s resources on the table, but I can speak for British Columbia,” he also said, when asked for his stance on the issue, factoring that Saskatchewan and Alberta are staunchly opposed to the idea of using energy and natural resources as a bargaining tool.

Eby said there needs to be an “integrated strategy across the country,” recognizing that the trade war affects businesses and customers on both sides of the border.

“We’re there,” he added. “We’re absolutely going to stand with Canada, we’re part of Team Canada, we’re all in, we’re going to fight this fight.”

On Tuesday, Trump followed through on his threat to impose sweeping 25 per cent tariffs on Canadian goods, with a 10 per cent tariff on Canadian energy.

And Canada was quick to hit back, with a 25 per cent tariff on $30 billion in U.S. goods, and the threat of a second round of retaliatory measures to come later this month.

Within days, Trump largely backtracked on his levies, first with a carve-out for autos, and then with an exemption for goods that are compliant with the Canada-U.S.-Mexico trilateral trade deal, which accounts for nearly everything.

While Canada is consequently holding off on its next phase of counter-measures — tariffs on a wider list of American products, valued at $125 billion — some premiers are following through on other threats.

Ontario Premier Doug Ford is vowing to up the ante on Monday, by imposing an export tax on electricity to the U.S., while Eby is making plans to toll U.S. trucks traveling to Alaska, and “putting the tools in place” to also impose an export tax on electricity from his province.

“The chaos of the constant threat of tariffs, they’re on again, they’re off again, they’re on this, they’re not on that, is taking a real toll,” Eby said.

“So until the tariff threat is removed, we’re sitting at the table, we’re having a grown-up conversation and a negotiation about our trade relationship to address whatever the irritants are that are in the president’s mind about the deal he negotiated last time, (and) the measures are going to stay in place,” he also said. “And we stand strong with all the premiers on this and with the federal government.

Eby open to pushing net-zero LNG targets

Amid Trump’s tariffs and in the months leading up to them, officials at all levels of government and across the aisle have highlighted the importance of Canada diversifying its export markets to reduce its reliance on the United States.

Both the president of Poland and the prime minister of Greece have told Kapelos — also in interviews on CTV’s Question Period — that they would be interested in purchasing Canadian liquefied natural gas (LNG) if it were available to them.

To that end, Kapelos asked Eby whether he’s supportive of phase two of LNG Canada. The second phase of the project would expand the existing LNG export facility near Kitimat, B.C., which is scheduled to come online at some point in the middle of this year.

The premier said his government is “certainly supportive of the project,” and undergoing negotiations with the company for phase two.

Eby indicated any new resource project would still have to fit into his province’s climate plan and emissions targets.

“I know it’s not the fashion right now internationally, but climate change is real and we need to take action on it,” he told Kapelos.

The ability for either phase two of the project or the pipeline that brings the gas to the terminal to meet those requirements largely depends on electrifying them, rather than using gas to power the associated sites. Proponents of the projects have argued total electrification would take time, and a phased in approach could be necessary.

When asked whether he’d find it “acceptable” to phase in that electrification process, Eby said yes, as long as 2030 net zero climate goals are factored in. He added there are other projects underway that are “on track” to meet the 2030 target. When asked if there was any wiggle room in the 2030 deadline given the current economic crisis, Eby did not rule it out.

“We can have those conversations with companies, but we haven’t had to.”