B.C. Cities Among Least Vulnerable to U.S. Tariffs, New Report Shows

British Columbia’s economy may be better positioned than most of Canada to withstand potential U.S. trade tariffs, according to new data from the Canadian Chamber of Commerce.

While the entire country would feel economic strain, B.C. cities are generally less reliant on U.S. exports, with Kamloops ranking as the second-most resilient city in the country, the report shows.

Tariff Threats and Canada’s Economic Outlook

U.S. President Donald Trump has imposed 25% tariffs on steel and aluminum and has threatened broader tariffs on Canadian goods.

According to Stephen Tapp, the chamber’s chief economist, even though B.C. is better insulated, the impact on Canada’s economy could be severe.

"I don't think anybody's fully insulated from Trump's tariff threats," Tapp told CBC's Daybreak Kamloops.

"But B.C. economies, in our numbers, come out a lot less exposed than some of the other places in the country."

The chamber’s Business Data Lab examined Statistics Canada data from 41 Canadian cities with populations over 100,000, assessing how much of each city's economy depends on exports to the U.S.

Kamloops and Nanaimo Among Most Resilient

Kamloops—located 253 km northeast of Vancouver—ranked 40th out of 41 cities, meaning it is one of the least dependent on U.S. exports.

Exports from Kamloops to the U.S. make up only 2.3% of the city’s GDP, well below the national average of 20%. Additionally, just 15% of its total exports go to the U.S.

Similarly, Nanaimo, on Vancouver Island, ranks among the least vulnerable, with U.S. exports making up just 4.1% of its GDP.

Other B.C. cities with low exposure to tariffs include:

• Victoria

• Kelowna

• Vancouver

• Chilliwack

The only B.C. city that ranks in the top half of tariff exposure is Abbotsford-Mission, which sits along the U.S. border and ranks 15th out of 41 cities.

Why B.C. Is Less Vulnerable

Tapp says B.C.’s stronger trade ties with Asia help buffer the province from U.S.-imposed economic shocks.

"One of the main benefits of B.C.'s economy is that there’s a lot more trade with Asian economies and a lot less dependence on the U.S. market," he said.

UBC economist Ross Hickey agrees that Kamloops and other B.C. cities may be better positioned than many Canadian regions—but that could mean missed economic opportunities.

"The U.S. is the largest consumer market in the world, very high income, high population, and it's right next door," Hickey said.

"Tariffs make trade less favorable, but economic integration with the U.S. will always remain an opportunity."

B.C. Not Entirely Immune

Despite being more insulated, B.C. industries already suffered when the U.S. nearly doubled softwood lumber tariffs last year.

Hickey also warns that the bigger threat may not be tariffs alone—but the risk of a U.S. recession.

"If Trump's policies reduce the income of Americans, that’s not good for us as a trading partner," Hickey said.

"I don’t wish ill upon our trading partners, but I hope they recover from the insanity that's taking place right now."