As the tariff threats of President Donald Trump continue to hang on Canada, BC Prime Minister David Eby wants the federal government to impose a tax on US thermal coal expelled from the province as a way of pressing the White House.
But after the president lashed out in Canada for the Ontario taxes, it is also feared that more reprisals from the provinces can be counterproductive.
BC ports are a “life line” for Montana and Wyoming, which depend on their northern neighbor to take their coal to Asian markets, according to Tony Knutson, global head of Wood Mackenzie’s thermal coal markets.
“There are no other options on the west coast at this time,” Knutson said in an interview with CBC News.
In 2024, the port of Vancouver handled almost 17.4 million metric tons of thermal coal, according to the Port Authority of Vancouver Fraser. Almost three quarters came from the United States and were sent to foreign markets, including South Korea and Japan.
On Monday, Eby said he presented a proposal directly to the outgoing prime minister Justin Trudeau to put taxes in US coal exports or even completely restrict them. In 2021, the Federal Government promised to prohibit exports of thermal coal by 2030.
“So it is something in line with the values of the outgoing prime minister and what their priorities were,” Eby said.
The idea has also been floated by the opposition leader of BC, John Rustad. Energy experts say such tax would damage US coal exporters and could get Trump’s attention. Environmentalists also support the tax, seeing it as a victory in the fight against climate change.
United dependence
The thermal coal, which is almost universally defamed by its high emissions, is used to make steam that produces electricity.
The export of US coal. It is an industry of one billion dollars that withdrew in the last two decades after states stopped depending on coal for most of its use of electricity due to an increase in natural gas production, said Professor of the University of British Columbia Kathryn Harrison, who studies energy policy.
The United States needs to export coal through Canada because it does not have its own port that is large enough or sufficiently close to Asian markets, he said.
Washington State and Oregon have blocked the development of coal export facilities due to environmental concerns.
“The United States is exporting its thermal coal through Canada because we have been willing to export it,” said Harrison.
The coal of the Powder river basin in southeastern Montana and the northeastern Wyoming is transported by rail from the United States and then is sent from BC, mainly to Westshore terminals in Delta, BC
Imagining a tax to regulate trade is the responsibility of the federal government. In a statement, Global Affairs Canada said: “All options remain on the table since the government considers additional measures, including non -tariff options, if the United States continues to apply unjustified rates in Canada.”
The prime minister’s office said he could not comment on behalf of Prime Minister’s designated, Mark Carney, since he has not yet sworn.
Harrison points out that in addition to the BC terminals that send coal, Canada does not benefit from exporting the product.
“This is not our [coal] Mines This is alone, in a sense, doing a favor to the United States, “he said.
Fraser Thomson, an ecojustice lawyer, says that the moment of favors is updated.
“Buyando an obsolete and harmful industry at the expense at the expense made little sense in times of strong friendship with our residents of southern America. Today it makes no sense,” he said.
‘Anything could be angry’
Harrison and Knutson with Wood Mackenize say that Trump could face the pressure of red state senators and American coal producers, since a carbon export tax would reduce their margins.
“It is quite important for those states that I think they would be aware of any of those losses,” Knutson said.
Trump has tried to appeal to the coal industry since its first presidential offer, promising to revitalize the coal industry and have signs that read “Trump excavates coal”.
More recently, Trump suggested that coal can help meet the growing demand for manufacturing electricity and massive data centers necessary for artificial intelligence.
“Nothing can destroy coal. Not the weather, or a bomb, nothing,” Trump said in a January speech to the World Economic Forum. “And we have more coal than anyone.”
But Harrison said that taxing US coal exports could anger Trump, which could lead to more punishing tariff threats.
“That is the nature of a commercial war. It is also the case that each step in a commercial war hurts both countries. I hope the country will first depend on the resolution of citizens,” he said.
On Tuesday, Trump said he would double tariffs against Canadian steel and 50 percent aluminum in response to the 25 percent ontarium surcharge in electricity to the United States. He used part of the strongest language seen so far during Canada’s commercial war, promising Ruin Canada economically. Ontario then suspended his lien.
“It is very unpredictable, so anything could be angry,” he said.
The National Mining Association of the United States also said that Canada could face consequences if Ottawa imposes taxes.
“If Canada chooses to point to US coal, it will force US exporters to find other export options, harm Canadian jobs and damage a source of mutually beneficial trade that has been an important success story for both nations,” the association said in a statement.
The Westshore terminals, the most busy coal export terminal in Canada, did not respond to CBC News comments.
