The threats of tariffs has pushed confidence among small business owners in B.C. to a point lower than it was during the COVID-19 pandemic, the financial crisis of 2008 or the events of 9/11, according to a new survey.
The Canadian Federation of Independent Business' monthly survey of long-term confidence sees B.C. at 26.5 index points on a scale of 100 -- a drop of 22.6 points compared to its previous survey.
Ryan Mitton, CFIB's legislative affairs director in B.C., blamed the historic low on the uncertainty the Canada-U.S. trade war is causing.
“The addition of Chinese tariffs and possible disruptions to B.C.’s cruise ship season will only add to the uncertainty caused by the tariff dispute," he added.
Mitton praised British Columbians making an effort to shop locally, but also called for additional action.
“While consumers do their part to support local stores and services, it is critical that the B.C. government accelerates efforts to lock in domestic free trade and provide meaningful cost relief, including repealing the provincial carbon tax on small businesses.”
Government earlier this month promised to eliminate the consumer carbon tax following Ottawa's decision to eliminate the legal requirement. Last week during a town hall meeting. B.C. Finance Minister Brenda Bailey touted other measures designed to help small businesses such as changes to the Employers' Health Tax, while also promising additional measures.
Conservative Gavin Dew, MLA for Kelowna-Mission, who also serves as shadow minister for jobs, economic development and innovation, said the latest CFIB figures are evidence of government's economic mismanagement.
"Our economy was a dumpster fire long before the tariff threat," Dew said in a statement. "Are we supposed to give the arsonist more power to extinguish the fire?”
That last comment can be read as a critique of Bill 7, the Economic Stabilization (Tariff Response) Act. Government introduced the bill earlier this month, describing it as an emergency tool to quickly respond to any trade-related actions U.S. President Donald Trump might take.
"Eby expects a standing ovation for simply talking about the economy, but British Columbians aren’t buying it," Dew said in the statement. "They’re too busy watching their businesses buckle under crushing taxes, suffocating red tape, and runaway government spending.”
Speaking with Black Press Media before the release of the new survey, UBC political science lecturer Stewart Prest said British Columbians are becoming more used to the uncertainty surrounding the trade situation with tariffs being announced, then rescinded within hours.
"There is a sense that things are not going to return to normal, or what we used to think of as normal, anytime soon," he said., while adding that does not mean B.C. is powerless. "We simply have to react as the situation evolves and we can't get too bent out of shape about any one development."
Prest said could also mean that issues that dominated before tariffs could re-emerge once British Columbians are becoming more "accustomed to living under the new normal" that the Trump administration represents.
"So that means, if the sense of crisis recedes a little bit, British Columbians may start paying more attention to issues of locally affected affordability," Prest said. "Something like a hike in energy prices may then re-emerge as a significant source of discontent, given that issues of affordability have not gone away. They remain a challenge for British Columbians and indeed are going to be more visible if tariffs are actually applied in any consistent and significant way from the United States."
B.C.'s Jobs Minister Diane Gibson acknowledged in a statement that long-term confidence among businesses is down across the country, but also pointed to B.C.'s better numbers compared to other jurisdictions.
“We will continue to work with small businesses on a whole-of-government approach to strengthen BC’s economy and protect businesses, families, and jobs," she said.
She said that businesses across British Columbia are facing difficult times following the pandemic, supply chain issues, inflation and high interest rates.
"(Now) businesses face an unprecedented threat of unjustified U.S. tariffs," she said. “This is a serious threat against the people of British Columbia and our economy and that’s why we’re standing strong to defend British Columbians, workers, and industries, against Trump’s tariff threats." Measures include trade diversification and working with business leaders to ease the cost of doing business and improve competitiveness.
“Ottawa recently announced supports Canadians across the country who may be directly affected by tariffs," she said. "We will fill in any gaps to make sure that British Columbians are protected. We will get through this together."
