B.C. gov’t to freeze hiring, cancel grocery rebate amid U.S. tariff threats

The provincial government of British Columbia announced it will freeze hiring any new public service employees due to the looming threat of U.S. tariffs on Canadian goods.

Speaking to media Thursday, Finance Minister Brenda Bailey says the tariffs already pose the threat of 100,000 jobs lost in all industries provincewide. She says the current conditions have made it extremely challenging to prepare a budget, as scheduled for March 4.

In response, Bailey says the province has taken more action Thursday to expand the public service hiring pause “in all but positions that support core government programs and services.”

“This pause is being managed by the head of the public service and PSA. And it’s a model by which exemptions will be requested. So each position that is looking to be exempted — because it’s a core service British Columbians rely on — will be reviewed specifically and made decision by decision,” Bailey explained.

She clarified that ‘public service’ roles are those which service the provincial ministries directly, not to be confused with roles in the larger ‘public sector.’

Additionally, Bailey announced that the proposed provincial rebate on groceries will not be included in the upcoming budget.

Speculation grew in late January that a promised rebate might be shelved.

The pledged rebate was to deliver $1,000 to families and $500 to individuals to help address cost-of-living challenges and expected to cost the province $1.8 billion.

“The time that this commitment was made, it was a very different time than the world after Nov. 25. Then President elect Trump announced 25 per cent tariffs on their closest trading partner,” said Bailey Thursday.

“We do not get to make decisions in a void or a world that is unchanging. We too are deeply disappointed. We intended to do this. The world has changed on us, and it’s become much more uncertain. In the short time that I’ve been finance minister — three months — I’ve seen three dramatic changes to the prediction of what just next year’s GDP will be. These are very uncertain times, and we have to make very difficult decisions. “

She says the province has declined to simply postpone the rebate, due to the expectation of “ongoing uncertainty” with the current U.S. administration.

U.S. President Donald Trump rolled out his plan to increase U.S. tariffs to match the tax rates that other countries charge on imports on Thursday, possibly triggering a broader economic confrontation with allies and rivals alike as Trump hopes to eliminate any trade imbalances.

“I’ve decided for purposes of fairness that I will charge a reciprocal tariff,” Trump said in the Oval Office at the proclamation signing. “It’s fair to all. No other country can complain.”

Earlier this week, Trump announced he will impose 25 per cent tariffs on steel and aluminum imports. White House staff later revealed that the metal tariffs would stack on the proposed 25 per cent tariffs for all imports — which have been postponed until March, following a conversation between Trump and Prime Minister Trudeau.

The BC General Employees Union, which represents public service employees, says it was not given advance notice of the announcement.

President Paul Finch says the union is concerned and he’s unclear on who will be affected by the hiring pause.

“We think that if government is looking in terms of where they need to pause some of this hiring, it really should be in these excluded management positions and not in these frontline positions that are critical,” said Finch.

In a statement to CityNews, Bailey said the hiring pause relates to jobs within the BC Public Service, meaning people who work in government ministries. It does not relate to workers in the public sector, including teachers and health-care workers, she says.

“Part of our response to the reckless, destabilizing threats also means we have to protect our current resources — make sure our investments to date are working as intended for the people of B.C.,” she said.

“The world has changed since Trump became President and we are ready to protect services and defend the people of B.C., no matter what comes next.”

—With files from Renee Bernard, Emma Crawford, and Josh Boak, The Associated Press