Monday, January 26, 2026

A Year Later, B.C. Uncertain if It Terminated Any U.S. Government Contracts Due to Trump

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### The Promised Shift: A Year of Uncertainty for B.C. Government Contracts

Almost a year after the British Columbia government vowed to cancel contracts with American firms in favor of local suppliers, it now finds itself in a position of uncertainty. The Ministry of Finance has admitted that it lacks crucial data on the implementation of this policy, raising questions about its commitment to the initiative.

### Lack of Tracking Mechanisms

The absence of a comprehensive list detailing cancelled U.S. contracts, along with information on Canadian suppliers, contract numbers, and procurement values, is a significant oversight. This has drawn attention to the government’s tracking and auditing processes—or the lack thereof. Finance Minister Brenda Bailey acknowledged this gap, stating, “I think the folks who would be making tables and counting up number of contracts are pretty busy ensuring we’re doing this transition.”

### Initial Promises and Responses

Premier David Eby initially announced the move to reduce reliance on American companies in January, reacting to heightened tariffs introduced by former U.S. President Donald Trump. Following these initial remarks, explicit directives were given to government agencies in April to prioritize Canadian suppliers. However, despite these strong declarations, the lack of follow-up data indicates that tracking the outcome has not been a priority.

### Examples of Current Contracts

When pressed for details regarding the policy’s progress, the Ministry could only provide a handful of examples illustrating minor modifications. These included a maintenance contract excluding American firms, and two contracts awarded to Canadian arms of U.S. companies. The limited scope of these examples highlights an ongoing reliance on American entities rather than a definitive shift in procurement strategies.

### Ambiguity in Criteria

Interestingly, the government has stated that it remains permissible to contract with American companies that have a Canadian presence and employment base in British Columbia. This nuanced criterion raises further concerns about the effectiveness and intent of the original policy. Critics argue that such flexibility undermines the objective to support local businesses.

### Opposition Concerns

Opposition Conservative finance critic Peter Milobar has expressed skepticism regarding the government’s commitment to its own promises. He pointed out the stark absence of any real discussion around this issue in public forums, suggesting that this silence reflects failure to achieve tangible results. He remarked, “The simple fact government is not even talking about it tells you they haven’t actually succeeded in reducing the government contracts that are with American suppliers and American companies.”

### Broader Context of Economic Policy

The push to shift contracts is part of a broader strategy linked to trade relationships and economic stability. Eby’s proposals extend beyond contracts to include taxing American trucks using B.C. roads for Alaska-bound shipments, although this measure has not yet materialized. Furthermore, while the government did successfully remove certain American liquor products from public store shelves, suppliers have reported challenges in getting local goods to occupy those spaces.

### Legislative Comparison with Ontario

Against this backdrop, Ontario has introduced legislation mandating that public entities contract with local providers whenever feasible, complete with financial penalties for non-compliance. In contrast, Minister Bailey has argued that British Columbia does not require a similar legislative framework, suggesting confidence in the current approach but ultimately leaving the effectiveness of these assurances unproven.

### Ongoing Challenges

The B.C. government has expressed aspirations for this local contracting initiative to foster opportunities for B.C. companies. Yet, with no clear benchmarks or accountability mechanisms in place, the path forward remains murky. As the government continues to navigate these changes, stakeholders and constituents alike are left awaiting definitive action and results—an expectation that, at this point, seems increasingly distant.

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