Conservative Party of B.C. Leader John Rustad Thursday (Jan. 23) called on Premier David Eby to dial down the rhetoric in the face of American tariff threats.
"Look, we can pick a trade war anytime we want," Rustad. "The reality is we are going to get our butt kicked and we have to understand that."
His comments come after a far-ranging interview with Black Press Media Thursday (Jan. 23) about the potential 25 per cent tariffs on Canadian goods starting possibly as early as Feb. 1. Rustad also discussed comments he made in a recent CBC interview during which he called the United States Canada's "strongest ally."
When asked what type of ally threatens another one with tariffs and annexation through "economic coercion" as recently as Thursday morningw when U.S. President Donald Trump virtually addressed the World Economic Forum in Davos, Rustad acknowledged the "bluster" coming from Trump. But he also pointed to the "historically" strong commercial and geopolitical ties between Canada and the United States.
"Donald Trump may want to change that; we'll see how that play out," Rustad said. "But my perspective is very clear: the States are still important trading partners," he added in pointing to the reliance of B.C. when it comes to American food and tourists. "If we were suddenly looking at the United States as an enemy, the damage that would be done to Canada, to British Columbia particularly, would be immeasurable."
Developments, however, may suggest the United States is treating Canada like an enemy, a point Eby made the other day, when he said that the United States, not Canada, "picked this fight."
When asked to assess the accuracy of Eby's comments, Rustad said "we are not in a fight."
"We are seeing words bouncing around," he said. "We are not in fight and when you see this sort of rhetoric, I understand entirely why Trump says Canada is difficult to work with. With the last 10 years, we had Justin Trudeau, who quite frankly, has been an idiot in terms of what he's done for Canada. So I understand why Trump would be frustrated with that. I'm frustrated with what has been happening in Canada."
Trump has linked his tariff threats to Canada's failure to prevent drugs and migrants from entering the United States. But several commentators have noted it is not the responsibility of Canada to protect the U.S. borde. Some have dismissed Trump's linkage between tariffs and the state of Canadian borders as a pre-text for what Trump wants to do anyway.
Rustad told the CBC that the two issues are related. While protecting ports is a federal jurisdiction, containers going through British Columbia fall under B.C.'s jurisdiction, Rustad said, adding that less than one per cent of containers are checked. With more than 15,000 people dead of poisoned drugs, "why would we not want to be trying to stop the flow of drugs?" Rustad asked.
"So let's do it and if the federal government is inept and decides not to do it...then we've got to step up to the plate and just do it," Rustad said, adding that B.C. would then send the federal government "a bill for doing the work right."
Beyond self-interest, it would also send a signal of cooperation, Rustad said.
"This is the longest, undefended border in the world 鈥� let's figure out we work together on it."
Rustad told CBC Canada would be free to retaliate if Trump were to impose tariffs even after "doing the right thing" of protecting the border.
A question of whether Canada's response should depend on the opinion of the United States led to Rustad's "butt kicked" comment, pointing to B.C.'s dependence on American food and tourists.
"How much damage does David Eby want to do to British Columbia? This is absolutely insane to be thinking this way."
Retaliatory tariffs are not unusual. Canada imposed them on the U.S. during Trump's first term and the European Union used them to achieve what experts call an "armistice" on some trade issues. If retaliatory tariffs are good for the Europeans, why are they not good enough for B.C. and Canada?
Rustad said the European Union is a larger market (with a population of 450 million) with "tons of different options" not available to Canada.
"We are 40 million people sitting next to our largest trading partner and the largest economy in the world," he said. "It's a very different scenario."
In other words, Canada has less leverage than the United States, a point also shared by some economists.
Federal and provincial officials have identified two other measures as part of Canada's collective response: trade diversification abroad and economic development at home by lowering trade barriers and speeding up permitting.
Rustad questioned whether B.C. can achieve either. But he agreed with the push to lower trade barriers within Canada. He added tariffs from the United States, followed by a lengthy trade war, would essentially shut down the resource sector with effects for the entire economy.
"The job losses will be huge," Rustad said. "We will be in a depression in this province. We should be doing everything we possibly can to avoid having a tariff or trade war with the United States, because it is the resource sector that will feel it most acute and small communities around the province."
Rustad added that governments in Victoria and Ottawa have left B.C. "completely and totally" unprepared.
"We will be devastated. We don't have fiscal room," he said, pointing to B.C.'s record-setting deficit of $9.5 billion. "We don't have the trade options. We are going to be caught with our pants down if we get into a trade war."
Rustad said he wished that wasn't the case.
"I'm a very much pro-Canadian, (a) proud Canadian, proud British Columbian," he said. "But we have had governments, both federally and provincially, that have just been absolute basket cases. They have left us in a hopeless situation."
He said the situation would be different if past governments had done a better job with "expanding our trade options outside of the (United States)" and exporting natural resources to other countries, "so we are less dependent on the United States."
"But we have governments that have been following this woke agenda, this environmental agenda, that have done nothing but damage, both provincially and federally, that have left us extremely vulnerable," he said.
Rustad said he is not arguing that the United States is looking to punish Canada because it is pursuing different social policies.
"But I'm saying that the policy approaches in Canada have left us vulnerable," he said. "We are so focused on gender ideology, on (diversity, inclusion and equity) and (environmental, social and corporate governance), that we have forgotten the basics 鈥� having a functioning, strong economy that feeds people, that puts people to work, that supports our communities."
"Now, we are going to face the music, if we have a hostile neighbour. I hope that isn't the case. We need to figure out how to work with our neighbours. But yeah, we are going to be in a mess. If this carries forward, if Trump carries forward with the tariffs, we are in a mess and us ramping the rhetoric is not the answer."
