Event Series: B.C.’s Response to Tariffs in Surrey

Early this year, in the wake of U.S. tariff threats on Canadian goods, British Columbia (B.C.) Premier David Eby announced a strategy aimed at safeguarding the province’s economy and affected businesses by responding, strengthening the economy and diversifying markets. On May 2, 2025, government officials including the Honourable Rick Glumac, B.C. Minister of State for Trade, business leaders and trade experts came together for an informative event in Surrey, hosted by the Surrey Board of Trade, to review the elements of the strategy and reaffirm the province’s commitment to support local businesses and the economy in the face of tariffs.

Quick facts about Surrey:

• Surrey’s rapidly growing sectors include high-tech, clean energy, advanced manufacturing, health, education, agriculture and the arts.
• There were 24,230 licensed businesses in Surrey in 2024.
• Since 2018, three has been a 37% increase in the total number of business licences in Surrey.
• More than 2,000 people move to Surrey every month.
• BC Stats projects that Surrey’s population will eclipse Vancouver’s by 2029.

Event Overview

The event gathered businesses, industry associations and consultants from Surrey, Langley and White Rock, all eager to learn about B.C.’s response and the programs, resources and trade opportunities available to support growth.

To open the event, Minister Glumac shared that “it doesn’t matter what the U.S. does, B.C. will continue to secure its own future by diversifying and finding new markets for our goods, strengthening our economy and responding as part of Team Canada to unjustified tariffs.”

He continued by elaborating on the three-part response to U.S. tariffs by explaining that we will first respond with the rest of Canada “supporting nationally coordinated retaliation, and we are taking our own actions, like pulling American liquor from BC Liquor stores and ensuring government and Crown corporations buy Canadian first and non-US goods and services wherever possible.

Second, we are strengthening our provincial economy through actions like speeding up permitting and reducing trade barriers between provinces … And third, we’re driving forward our work and the federal government’s work to find new buyers and suppliers in other markets for B.C. goods.”

The event’s key presenters from the B.C. Ministry of Jobs, Economic Development and Innovation, Export Navigator and Service Canada elaborated on the various opportunities and resources that businesses can leverage. Speakers highlighted the importance of free trade agreements (FTAs) and the opportunities they present. With international trade playing a crucial role in B.C.’s economy, especially as new tariff challenges arise, market diversification and understanding and utilizing Canada’s various FTAs has never been more critical for Canadian businesses.

Key Takeaways and Insights from the Event:

The Power of Free Trade Agreements

Canada is a global trading nation, and the Government of Canada has negotiated 15 FTAs covering 50 countries, representing nearly two-thirds of global GDP. These agreements give Canadian businesses access to approximately 90% of the world’s export markets, opening doors to about 1.5 billion potential consumers. Importantly, Canada is the only G7 country with FTAs with all other G7 nations, strengthening its position in global trade.

While B.C. exporters can do business with almost any country, doing business in countries where Canada has an FTA in place offers several benefits.  These include the reduction or elimination of trade barriers such as tariffs (which act as a tax on imports) and quotas. This means the price of B.C. products are typically more attractive in markets where Canada has an FTA.

Quick Facts:

• In 2021, B.C. exported $49B in goods and services to other Canadian provinces.
• While B.C. exported more than twice the amount of goods internationally than it did interprovincially, when it comes to services, B.C. exported more services to other provinces than it did globally.

Navigating the New Rules Under CUSMA

One of the key topics discussed at the event was the impact of the new U.S. tariffs under the Canada-United States-Mexico Agreement (CUSMA). Prior to the recent actions taken by the  U.S. Government, most Canadian exports entered the U.S. tariff-free or virtually tariff-free but now businesses must claim the CUSMA preference and comply with the Rules of Origin to avoid tariffs. These rules define whether a product qualifies for preferential treatment. If a product does not meet these criteria, it is considered “non-originating” and will be subject to the new U.S. tariffs.

Understanding and adhering to these rules is critical for businesses exporting to the U.S. and Mexico. The event emphasized the importance of ensuring that goods are certified as originating from Canada in order to maintain tariff-free access to the U.S. on most products.

B.C.’s Trade Diversification Strategy

In response to the evolving global trade environment, the Government of B.C. launched the Trade Diversification Strategy two years ago. This initiative focuses on creating new trade and investment opportunities for B.C. businesses, while also expanding trade in existing markets. By increasing the number and diversity of markets for B.C. exporters, the strategy aims to reduce the province’s reliance on any single market and foster long-term economic resilience.

The Indo-Pacific region, which includes 40 countries and over four billion people, was highlighted as a key area for growth. It is the world’s fastest-growing region and home to six of Canada’s top 13 trading partners. Businesses in B.C. can capitalize on this high-growth market, diversifying their export base and accessing new customers.

The Value of Exporting in Uncertain Times

The event also underscored the importance of exporting, even amid uncertain global trade conditions. By expanding into international markets, businesses can reduce their vulnerability to domestic economic fluctuations, reach a larger customer base and enhance their competitiveness. Exporting allows businesses to increase sales and profits while building resilience against risks such as political changes or supply chain disruptions.

To gain a deeper understanding of trade nuances, attendees were encouraged to explore the following export programs and services:

• Trade Accelerator Program: Designed for new and existing exporters, this program helps businesses create an export plan to enter new markets, with input from different mentors and advisors.

• Export Navigator: Targeted at pre-export and new exporters, this program offers customized advisory support to help businesses become export-ready. This service also connects businesses with the Technical Specialist Pilot Program, where small businesses receive personalized support from a technical specialist to overcome barriers and become export-ready.

For businesses ready to export, contact Trade and Invest BC (TIBC) to expand globally, attract international investment and grow your business. By partnering with TIBC Trade and Investment Representatives – who are in over 20 major cities across North America, Europe and Asia, you will receive hands-on support, market insights and valuable connections to help you succeed internationally.