B.C. Opposition leader wants to hit U.S. with ‘carbon tax’ on coal shipments

British Columbia Opposition Leader John Rustad has come up with a unique proposal to combat the threat of fresh tariffs on Canadian softwood lumber by the White House. His idea involves imposing a carbon tax on U.S. thermal coal that is shipped out of provincial ports. Rustad believes that this tax could serve as a tool to pressure the American government and secure a favorable deal on softwood tariffs.

Rustad, who was expelled from the former BC Liberal party in 2022 for his controversial views on carbon dioxide emissions and criticism of B.C.’s carbon tax, sees this as a strategic move to address the ongoing softwood lumber dispute. He emphasizes the need to find a solution that will benefit both British Columbia and the United States.

While Rustad’s proposal has garnered support from some quarters, including Premier David Eby who commended the idea of retaliating against the tariff threat, there are challenges to implementing such a tax. Eby pointed out that taxing U.S. coal passing through B.C. ports could be legally problematic as it involves a federally regulated process.

The concept of taxing coal shipments in response to U.S. tariffs is not entirely new in British Columbia. Former premier Christy Clark had previously suggested a similar levy on coal exports to counter escalating tariffs on softwood lumber. However, her approach was criticized by then-NDP leader John Horgan as reckless and irresponsible.

The softwood lumber dispute has been a longstanding issue between Canada and the United States, with both countries imposing duties and tariffs on each other’s products. The current situation, with the possibility of U.S. duties on Canadian softwood lumber exceeding 50 percent, underscores the urgency of finding a resolution.

Rustad’s proposal for a graduated carbon tax on U.S. thermal coal passing through B.C. ports is seen as a strategic move to apply pressure on the American government. He argues that until the unfair tariffs on Canadian softwood are lifted, such measures are necessary to protect British Columbia’s interests.

In response, the governing NDP has called for a motion condemning Trump and supporting a national plan for retaliatory action. While the motion was passed, there were dissenting votes from B.C. Conservative members who raised concerns about the impact of such measures on the economy.

Overall, the debate over the carbon tax on U.S. coal reflects the complex dynamics of international trade relations and the need for innovative solutions to address trade disputes. As British Columbia navigates these challenges, finding a balance between protecting local industries and fostering diplomatic relations remains a key priority.