Surrey Mayor Brenda Locke is taking a number of steps to address major concerns by businesses and individuals about the 25 per cent tariffs on Canadian goods going into the United States. The steep tariffs began on Tuesday.
She has joined a group of border city mayors from across Canada, who are speaking out together on the immediate threats to their cities’ economies. She announced on Jan. 30 that Surrey has joined the Border Mayors’ Alliance. The group was founded by Drew Dilkens, mayor of Windsor, Ont., which is probably the city most affected by the tariffs.
Windsor, across the river from Detroit, has long been a major auto manufacturing city. The group aims to advocate for the interests of communities along the Canada-U.S. border.
The concerns raised by this group are quite significant. Border cities in B.C., Ontario and Quebec, in particular, have economies that depend heavily on cross-border trade. In Surrey, the trucking industry, manufacturers and value-added businesses have all expanded to meet the demands of free trade, which has been in place between Canada and the U.S. since 1989.
Many businesses operate on both sides of the border. Windsor exemplifies this. The auto industry in Canada and the U.S. has had free trade since 1965, when the Canada-U.S. Auto Pact went into effect. Auto manufacturers ship parts back and forth across the border, and in some cases, the vehicle in production and its parts cross the border eight times before completion.
On Sunday, Locke also called on the B.C. government to immediately suspend the gas tax and PST on all B.C.-made goods, for the duration of the tariffs. Doing so would be a natural follow-up to calls by the province and many individuals to buy local.
"I am calling on Premier David Eby to immediately cut the gas tax, suspend PST on B.C.-made goods and review all other provincial relief measures to address the economic pressures from incoming U.S. tariffs," Locke said. "Immediate relief is essential. A gas tax cut will help alleviate the crushing financial burden on our businesses and residents, ensuring that families can continue to thrive in our community."
She thanked Eby for condemning the tariffs and noted steps he had already taken, such as halting selected American liquor imports. She also applauded his concerns regarding "our longstanding softwood lumber dispute, where entire communities depend on a stable forestry sector."
But she did note that B.C., has some of the highest taxes in Canada, which is a burden to residents and businesses alike. She also said there should be a comprehensive relief package similar to those introduced during the COVID-19 pandemic, in collaboration with the federal government.
Locke said the tariffs will put hundreds of local jobs at risk, particularly in manufacturing and value-added sectors.
"Surrey is especially vulnerable, given that we host the largest border crossings in Western Canada. Our data reveals that over 20 per cent of Surrey businesses have direct trade ties with the United States, representing roughly $2.8 billion in cross-border commerce annually."
Surrey Board of Trade has called on both the federal and provincial governments to halt all taxation changes that would deter business growth, freeze regulatory changes that add cost and red tape and implement a strategic plan to ensure that businesses in the South Fraser area are provided with greater international trade support. It has also launched a survey to hear what impact the tariffs are having on local businesses.
All of these initiatives could help many local residents weather this storm, which hopefully will be a brief one.
Frank Bucholtz writes twice monthly on political issues for Black Press Media publications.