B.C. Cancels $1,000 Grocery Rebate, Freezes Hiring Amid Trump’s Tariff Threats.
B.C. Cancels $1,000 Grocery Rebate, Freezes Hiring Amid U.S. Tariff Threats
The British Columbia government has announced the cancellation of its promised $1,000 grocery rebate and a hiring freeze on certain public service positions. The measures are intended to “find dollars” in the provincial budget as it braces for potential economic fallout from U.S. President Donald Trump’s proposed tariffs, said Finance Minister Brenda Bailey.
Bailey called Trump’s “reckless” and “destabilizing” tariffs impossible to predict, noting their potential to severely impact B.C.’s economy. The budget, set for release on March 4, coincides with the expiration of a pause on Canadian-specific tariffs and just days before tariffs on all foreign aluminum and steel may take effect.
Despite the tariffs not yet being implemented, B.C. is already experiencing economic repercussions. Bailey emphasized the importance of being cautious about the possible impacts, saying, “It would be wrong to underestimate their potential effect.”
Election Promise Reconsidered
The $1,000 grocery rebate, a key election promise from the NDP, was intended to provide immediate relief to households by the end of the fiscal year on March 31. However, Bailey said the $2-billion expense is no longer feasible given the current economic challenges.
“This was a commitment we wanted to honor, but the world has changed,” Bailey stated. “We must prioritize core services like health care, education, and public safety.”
Opposition finance critic Peter Milobar accused the government of fiscal mismanagement and breaking promises, stating that the NDP is now using the U.S. tariffs as a scapegoat.
Public Service Hiring Freeze
The hiring freeze affects provincial public service positions, excluding critical roles such as health care, corrections, and social services. Bailey also indicated the government would review areas like travel and consultancy costs for further efficiencies.
Paul Finch, president of the B.C. General Employees’ Union, criticized the lack of consultation with the union, warning that the freeze could impact essential government functions, including policy analysis for economic projects.
Economic Forecast and Impact
Trump’s proposed tariffs include a 25% levy on most Canadian goods and 10% on energy, alongside a 25% tariff on all foreign aluminum and steel. Bailey revealed economic modeling predicts the tariffs could result in a $69 billion GDP loss for B.C. over four years, along with tens of thousands of job losses.
“We never imagined our closest neighbor declaring economic warfare on Canada,” Bailey said. “The implications could be enormous.”
The government consulted 13 senior economists on the budget, which focuses on protecting core services amidst economic uncertainty. Bailey said, “We relied on the best estimates available to navigate this unprecedented situation.”
