Building ferries in B.C. could shield province from U.S. tariffs, report says A report from the Centre of Future Work argues that constructing ferries in British Columbia would help the province and Canada counteract rising U.S. tariffs by boosting local shipbuilding and preserving Canadian jobs. The BC Ferries vessel Spirit of Vancouver Island leaves Tsawwassen, B.C. , bound for Swartz Bay, on Monday, Sept. 9, 2024. The Canadian Press/Darryl Dyck VICTORIA - A new report says building ferries in British Columbia would help the province weather the harsh economic trade winds coming from the United States. The study, released Thursday by the Centre of Future Work, argues that constructing vessels in local shipyards rather than purchasing them from foreign builders would shield the provincial and national economies from steep American tariffs. The report comes 15 months after BC Ferries announced it had contracted a shipyard owned by the Chinese government to build four major vessels at a cost that has yet to be disclosed.At the time, the province said no Canadian company had submitted a proposal and the winning bid from China Merchants Weihai Shipyards was at least one billion dollars cheaper than other offers. But the decision sparked outrage among labour groups and industry leaders. Labour economist Jim Stafford, co-author of the study, says the move was a mistake that the government must not repeat, especially in light of tariffs imposed by U.S. President Donald Trump."The report is not aimed at relitigating the decision to buy Chinese ferries," Stafford said. "It is about helping B.C. realize the economic potential of the shipbuilding industry through domestic procurement guarantees and investments in facilities and labour. "] Eric McNeely, president of the union representing ferry workers and a member of the Build Them Here coalition, said the province must follow its own messaging about buying locally as it pushes back against American tariffs."If buying local matters, when I go to the grocery store, it has to matter," he said. "When BC Ferries is spending billions of dollars, including taxpayers' dollars, on vessels, we need to see that investment work here. "] Local shipbuilders have long argued that constructing vessels domestically would create high‑skill jobs and stimulate related sectors such as steel manufacturing and marine engineering.BC Ferries' current programme relies on a flagship headquarters in Surrey and several smaller facilities throughout the province, but the majority of maintenance and building work takes place overseas. The report estimates that each new domestic ferry could generate up to 1,200 direct and indirect jobs over its lifetime, while the total economic output could reach around $2.5 billion for the province.It also points out that the U.S. has already imposed tariffs of up to 25 percent on certain Canadian steel products, making imports more expensive. Experts say that while a domestic build would be more expensive upfront, the long‑term benefits to the provincial economy would outweigh the cost.In addition, a local supply chain could be more resilient in the face of global disruptions such as the 2025 shipping crisis. The provincial government, led by Premier David Eby, has stated that it remains open to evaluating both domestic and international options for future vessels. It has, however, announced plans to review its procurement processes and has promised to engage with Canadian shipyards more closely.BC Ferries has said it will continue to focus on passenger safety and service reliability, while also taking steps to modernise its fleet. The company has planned a long‑term phased up‑grade of its vessels, starting with the introduction of hybrid‑electric propulsion on new ferries. As the trade war with the United States thickens, the province is looking for ways to protect its infrastructure from sudden tariff hikes.The report urges the provincial and federal governments to provide incentives for shipyard expansion, workforce training and technology transfer. The Build Them Here coalition has already set up a task force to identify potential domestic partners and to negotiate a framework for future vessel construction. If the coalition's proposals gain traction, BC Ferries could see the first domestically built vessel appear in service by the early 2030s.While the report does not challenge the decision to order Chinese ferries, it does aim to create a pathway for a stronger domestic shipbuilding industry. The coalition's message is clear: local investment could provide a buffer against external economic pressures, preserve Canadian jobs and keep the province in control of its critical maritime assets.