British Columbia (B.C.) is endowed with many natural resources such as mineral deposits (e.g., copper, lithium), water, fish, and coniferous forests. These resources are essential for key industries in B.C. such as the lumber, energy, mining, and aquaculture industries.
Unfortunately, the use of these resources is causing instability in the wake of Donald Trump’s proposed 25% tariffs on all imported Canadian goods and a separate 10% tariff on Canadian oil and energy products. In response to looming tariffs, the Government of BC announced plans to accelerate 18 critical mineral and energy projects worth approximately $20 billion that are currently held up by administrative and regulatory government processes.
Effective resource management and resource use will impact the economic futures of Canadians, especially for young Canadians’ chance of thriving in the economy of tomorrow.
As of December 2024, B.C. exports about $54.5 billion of international goods to key trading partners such as the US, India, and China with energy being the top source for export earnings. These exports reduce Canada’s trade deficit with the world, attract foreign investment, and boost economic growth. At the same time, Canada has an opportunity to further increase the value of its resources by expanding domestic industries that process and refine these materials.
While exports remain vital for global trade and maintaining economic relationships, expanding domestic industries can complement export activities, creating additional economic opportunities in key B.C. sectors such as energy and forestry . Relying on both exports and domestic processing can strengthen B.C.’s economy, mitigate risks associated with commodity price fluctuations, and increase economic returns from its natural resources.
Although, B.C. faces challenges, including economic decline in key industries such as forestry, which experienced a loss of 10,000 jobs in 2023, the potential tariff threats from the U.S. looming. B.C. stands to lose a projected economic loss of $69 billion and 124,000 fewer jobs by 2028. This impact is significant since approximately 54% of B.C.’s exports are sent to the U.S.
The industries that stand to lose the most from these declines are natural-resource sector industries and manufacturing industries associated with the most abundant natural resources found in B.C.
The domino effect of these tariffs is overwhelming enough that it could reduce individual and corporate tax revenue, which can cause strain on the B.C. government and the Government of Canada to fund essential services for Canadians such as education, healthcare, research & development, and social protection services. However, these challenges also highlight the importance of diversifying economic strategies and reinforcing Canada’s position in the global economy.
Exports are an essential feature that has shaped the country’s economy and are as equally important as domestic natural resource investments. While there are opportunities for Canada to invest in domestic goods and services and reduce reliance on imports, Canada’s population alone cannot consume all the resources available within its borders.
Moreover, exporting goods strengthens international relations and maintains Canada’s position as a strong economic force in an increasingly interconnected global economy.
To mitigate the risks, associated with trade policies, focusing on accelerating mineral and energy projects that process B.C.’s natural resources domestically are so important. These projects prioritize domestic investment and can reduce the economic risk of tariffs.
Additionally, they can provide a greater economic future for young Canadians with a more stable economy and secure job prospects while reducing sensitivity to volatile foreign market policy adjustments.
Investing in domestic-focused natural resource projects could provide greater economic value to B.C. compared to relying solely on natural resource exports, even though exports are still crucial to our economy.
Policy research has shown that every $1 in GDP from B.C.’s natural resource sector results in an additional $0.93 of economic activity for interconnected sectors within the economy. This multiplier has steadily increased from 0.85 in 2014 and has a chance of increasing in the future.
Economic studies have proven that domestic-based investments provide significantly more economic value as they contribute to broader economic activity, including increased employment opportunities and higher wages for working-class individuals. While exports are still necessary for global trade and economic relationships, sometimes relying on them can limit growth in domestic industries, making the economy less resilient to external economic setbacks.
Therefore, by striking a balance, prioritizing both domestic investment and continued exports, B.C. can strengthen its economy and Canada’s economy. Focusing on key resources domestically while maintaining strong trade relationships can enhance economic stability, help retain young Canadian talent (especially those who are most likely to move to the U.S for career opportunities) and ensure a future with both secure job prospects and competitive global position.
The B.C. government and other provincial governments have a valuable opportunity to pursue a more economically advantageous strategy by utilizing domestic resources to create value-added products and services in its natural resource sector and other industries interconnected to the sector.
This strategy will better shield the B.C. economy from external trade uncertainties and provide the province and First Nations groups with greater control over natural resource use and management and economic development. While exports remain crucial to global trade and maintaining strong economic relationships, we should also be focusing on domestic value-added production that can complement export activities, driving further growth.
This approach can have the potential to accelerate economic progress both from exports and long-term development. Canada has the chance to build a stronger, more resilient future where young Canadians can thrive and contribute to a prosperous, self-sufficient nation.
Sign up for updates about our work at YCR. Please sign up using a personal email and not a work or school email if possible.
"*" indicates required fields
Many young people are aware of Canada’s strong energy sector. But what happens to the energy Canada exports? Why does it matter? Here are five positive impacts of Canada’s energy
As governments accelerate efforts to diversify energy sources and transition towards innovative alternatives, hydrogen is emerging as a promising resource for Canada’s energy future. With its abundance, energy density, and
Canada’s waste management and recycling industry plays a vital role in resource conservation… Here are my top 5 careers in the waste management sector that highlight the key professionals needed