British Columbia Premier David Eby has proposed two non-tariff measures to pressure the United States amid an escalating trade war: suspending the planned purchase of 88 F-35 fighter jets and imposing additional taxes on US thermal coal shipments through British Columbia. The proposals were announced during a press conference on August 26, 2025, as part of a broader response to recent US tariffs.
Canada’s federal government has already announced dollar-for-dollar retaliatory tariffs totaling $27.6 billion CAD on US goods, including steel, fish, dairy, and electronics, set to take effect on September 8, 2025. These measures follow the imposition of 50% US tariffs on approximately $20 billion CAD of Canadian imports, which took effect on August 24, 2025.
Immediate Actions and Core Developments
1. British Columbia Premier Proposes Non-Tariff Retaliation
British Columbia Premier David Eby urged Prime Minister Mark Carney to consider non-tariff measures in response to US trade actions. Eby specifically highlighted two targets:
F-35 Fighter Jet Purchase: Canada had planned to acquire 88 F-35 jets from US defense contractor Lockheed Martin at a cost of $12 billion USD. However, the procurement was placed under review by the federal government in March 2025. Eby argued that purchasing the jets would be counterproductive amid the trade dispute. “When your friend kicks you in the back, one of the first rules is you don’t then go and buy $12 billion of fighter jets from that person,” Eby stated.
US Thermal Coal Shipments: The Westshore Terminal near Vancouver serves as a key export route for US thermal coal. Eby suggested that Ottawa could impose additional export tariffs or taxes on these shipments to pressure the US.
2. Federal Government Announces Retaliatory Tariffs
On August 25, 2025, Canada’s federal government, led by Finance Minister François-Philippe Champagne, announced $27.6 billion CAD in counter-tariffs targeting over 700 US goods. The measures are scheduled to take effect on September 8, 2025, and include tariffs on steel, fish, dairy, and electronics. The federal response follows the US’s imposition of 50% tariffs on $20 billion CAD of Canadian imports, which took effect on August 24, 2025.
Deeper Dive: Context and Responses
Economic and Political Context
The trade dispute has intensified following the collapse of US-Canada trade negotiations last week. The US has also announced plans to raise tariffs on Canadian vehicles, auto parts, and steel to 50%, effective January 1, 2026. Canada’s $870 billion CAD in annual trade with the US makes the dispute particularly significant for both economies.
Reactions from Provincial Leaders
While Eby’s proposals focus on non-tariff measures, other provincial leaders have taken different approaches:
New Brunswick Premier Susan Holt stated that her province would not cut off electricity exports to Maine amid the trade war, calling such a move “extremely serious.” However, she acknowledged that the province is reviewing its $13.7 million tariff relief fund to assess whether additional support is needed for businesses affected by US tariffs.
Ontario Premier Doug Ford has previously suggested that his province could cut off power exports to the US entirely, though no formal action has been taken.
Business Community Response
The Greater Vancouver Board of Trade praised the federal government’s swift response, stating that the measures “recognize the significant challenges many companies are facing.” The organization emphasized that the trade war has damaged “one of the most successful economic partnerships in history.”
Public Opinion
A poll by the Angus Reid Institute found that 76% of Canadians believe Canada did the right thing by ending trade negotiations with the US. The survey reflects growing public support for a firm response to US trade actions.
Background: Timeline of Key Events
- March 2025: Federal government places F-35 procurement under review.
- August 24, 2025: US imposes 50% tariffs on $20 billion CAD of Canadian imports.
- August 25, 2025: Canada announces $27.6 billion CAD in retaliatory tariffs, effective September 8, 2025.
- August 26, 2025: British Columbia Premier proposes non-tariff measures, including suspending F-35 purchases and taxing US coal shipments.