Opposition Leader John Rustad has issued a call for Premier David Eby and his government to take swift and decisive action to address what they describe as a growing economic crisis in the province sparked by new U.S. tariffs.
In a letter delivered to the premier on Sunday, Feb. 2, John Rustad, leader of the BC Conservative Party, criticized the provincial government for its failure to respond adequately to mounting economic pressures, including the impacts of U.S. tariffs.
“British Columbia stands at a critical juncture,” Rustad wrote. “Your government’s failure to act decisively in the face of mounting economic pressures has left our province vulnerable. Instead of advancing policies that foster economic growth, your administration has prioritized ideological agendas that stifle development, drive up costs, and put British Columbians at a disadvantage.”
Rustad’s criticism centres on what he claims are the government’s ineffective policies, which he argues have worsened the province’s affordability crisis and stymied growth. He points particularly to the government’s decision to maintain the carbon tax and impose stringent regulatory requirements on the resource sector as key factors contributing to the economic decline.
Rustad also expressed frustration with what he describes as the government’s “kneejerk approach” to trade relations with the United States, particularly the negative effects of President Donald Trump’s tariffs.
“The government’s response to these tariffs has failed to protect BC businesses,” Rustad argued. “The tariffs are harming our economy, and instead of confronting these challenges head-on, Premier Eby’s administration has created an environment that makes it harder for BC businesses to thrive.”
Eby announced Saturday the first stage of BC's response to the 25 per cent U.S. tariff, ordering all liquor products imported to the province from U.S. states that voted Republican in November to be removed from shelves and barred from sale. This moves follows a similar action being taken in other provinces, including Ontario and Nova Scotia.
Also Saturday, Prime Minister Justin Trudeau announced retaliatory tariffs against U.S. imports.
In BC, Rustad is proposing immediate action through a “Tariff Response Plan," a 10-point blueprint designed to address both the immediate impact of international trade issues, such as tariffs, and long-term economic concerns in British Columbia.
At the heart of the plan is a call for immediate negotiations toward a Canada-Wide Free Trade Agreement, which Rustad argues is critical to eliminating inter-provincial trade barriers. These barriers, he contends, act as a de facto tariff, ranging from 21 to 25 per cent, and hinder the flow of goods and services across provincial borders.
By addressing these barriers, Rustad wrote, the Conservative Party believes BC can reduce its dependency on the United States and foster a more competitive economy.
“Interprovincial trade barriers are a significant obstacle to our economic growth, and eliminating them is key to building a more resilient and competitive BC economy,” Rustad said in a statement. “Our plan offers a practical solution to remove these barriers and strengthen our position in both domestic and international markets.”
The Conservative plan also calls for the immediate reconvening of the provincial legislature to pass a Fiscal Emergency Bill, which would provide the government with the flexibility to address pressing economic issues.
Among the proposed measures in the bill are additional funding for port and border security, the reopening of British Columbia’s international trade offices, and a review of the Environmental Assessment Act to streamline development processes. Rustad also proposes a quick, three-month review of government spending to eliminate waste and improve fiscal management.
“The need for urgent action cannot be overstated,” Rustad said. “We need to act now to ensure that we are not left behind as other provinces and countries move forward. British Columbia’s economic future depends on it.”
Another key component of the Conservative plan focuses on the province’s resource sectors, including liquefied natural gas (LNG), mining, and forestry. The Conservative Party is urging the provincial government to work with LNG Canada to fast-track the second phase of its Kitimat LNG project. This, they argue, would inject billions of dollars into the BC economy and create thousands of much-needed jobs.
Additionally, Rustad is calling for a 10-year extension to natural gas pipeline projects, which would reduce costs for the energy sector and help improve the province’s competitiveness on the global stage.
Rustad is also pushing for the removal of the carbon tax, a policy he argues has placed an undue burden on consumers and businesses in BC. Along with eliminating the carbon tax, the Conservative plan proposes removing the requirement for LNG projects to use electricity for compression, as well as lifting CO2 emissions caps and targets, which Rustad said have been a barrier to investment in BC’s resource industries.
On the mining front, Rustad is urging the provincial government to approve and advance approximately 17 mining projects that are already in the pipeline. According to the Conservative Party, these projects have the potential to generate approximately $36 billion in economic activity and create tens of thousands of jobs, significantly boosting BC’s GDP and revenue.
The Conservative leader is also calling for immediate support for BC’s forestry sector, which he says is facing rising costs and declining competitiveness. Rustad proposes the creation of a task force to explore cost reductions and improve the sector’s long-term viability.
“The forestry sector is a vital part of our economy,” Rustad said. “We cannot afford to ignore the challenges facing this industry. A targeted approach to cost reductions will help safeguard jobs and ensure that this sector remains a cornerstone of BC’s economy.”
Rustad is advocating for a shift in energy policy, proposing that the government halt plans for a new power line from the Northeast to the Northwest and replace it with natural gas-fired electricity generation directly in the Northwest. This, he said, would help reduce costs and provide a more sustainable and efficient energy solution for the region.
“We have an opportunity to turn this crisis into an opportunity,” Rustad wrote. “If we act now, we can not only mitigate the impacts of the U.S. tariffs but also create a stronger, more prosperous future for British Columbians.”
