By Harinder Mahil

I wrote a column last month titled: “How can Premier Eby improve public services and cut taxes at the same time” which was published in DesibuzzCanada in the first week of December. In the column, I discussed promises made by Premier Eby during the election campaign particularly “Putting $1,000 in the wallets of BC households now, and every year…”

I had difficulty understanding this promise because of provincial finances. I questioned how the government could pay for the services demanded by the public if it provides the rebate promised by Premier Eby. Such a rebate is likely to cost almost 2 billion dollars to the provincial treasury. It would erode the government’s ability to tackle many of the challenges it faces including childcare, healthcare and investments in housing. Such a rebate would have made sense if the province were running a surplus but that is not the case.

The situation has changed dramatically since the provincial election. President Donald Trump intends to impose a 25 percent tariff on all Canadian goods exported to the US as of February 1.

Decades of trade integration across North America faces major disruption by tariffs that Trump will impose on Canada. Economists and policymakers agree tariffs would cause a loss of income and jobs for British Columbians and force consumers to pay more for many products. They are likely to cause major damage to British Columbia’s economy.

While tariffs are predicted to inflict pain on both US and Canada, they would cause much more damage to Canada because of its smaller economy and its dependence on the United States.

British Columbia Ministry of Finance, in a statement issued on January 16, 2025, states that if Donald Trump were to proceed with 25% tariff, B.C. could see a cumulative loss of $69 billion in economic activity between 2025 and 2028. The Province’s real GDP is projected to potentially decline by 0.6% year over year in both 2025 and 2026. Job losses are estimated at 124,000 by 2028 with the largest declines in natural-resource sector export industries and associated manufacturing.

Although it is not an easy decision, Premier Eby and his finance minister must decide to scrap the rebate promised during the election. They may have to face some criticism, especially from the opposition.

To quote Martin Luther King Jr.: “A genuine leader is not a searcher for consensus but a molder of consensus.” Leaders must lead by example and overcome any challenges they face.

It is a challenging time for British Columbia and Canada. We have never faced this type of threat before. We need resources to support those who may be affected by Trump’s tariffs and to support public services such as health, education, and creating affordable housing.

The British Colombia government’s focus must be to make sure British Columbians affected by the proposed tariffs are supported.

Harinder Mahil is a human rights activist and is secretary of Dr. Hari Sharma Foundation.