Confidence among B.C. business owners is the lowest in Canada
Tariff threats from the United States are already impacting small businesses in B.C., whose owners are the least optimistic about their economic future.
The latest Business Barometer from the Canadian Federation of Independent Business measuring small business confidence finds B.C. at the bottom of the zero-to-100 scale with 52.7 in December, down 4.5 points from November. An index above 50 means owners expecting their business’s performance to be stronger over the next three or 12 months outnumber those expecting weaker performance. The Canadian average on the 12-month index is 54.6. The rate for B.C. drops to 43.6 on the three-month index – the worst among Canadian provinces with the Canadian average at 49.2 on the three-month index.
CFIB said in a release that the U.S. tariff threats “essentially reversed” the upward pattern seen until November in triggering a five-point decrease in long-term optimism.
“Most provinces are on alert and sticking to their ‘wait-and-see’ approach, resulting in small changes to confidence either downwards or upwards,” it reads. Not in B.C. though, which recorded the largest drop among provinces.
Ryan Mitton, CFIB’s director of legislative affairs in B.C., said the threat posed by U.S. tariffs is “severe and weighing” down small business confidence in B.C.
“Without financial tools to make B.C. a competitive destination for new investment, tariffs will deliver a gut-punch to B.C. small businesses,” Mitton said. “Our southern neighbour is B.C.’s largest trading partner — 56 per cent of (provincial) small businesses import, export, or do both with the United States. If the tariffs hit, 74 per cent of business owners expect their costs to rise, leading to higher prices at the till and fewer choices on store shelves.”
The figures appear as British Columbians, along with Canadians elsewhere, await Feb. 1 – the expected date of tariffs from the United States. Canadian officials continue to prepare their response to the threatened tariffs by promising retaliatory tariffs and taking steps to diversify trade and improve the domestic economy.
Conservative Kelowna-Centre MLA Gavin Dew, who serves as his party’s critic for jobs, economic development and innovation, said the barometer “confirms just how dire the situation has become” in noting that British Columbia “now has the lowest short-term business confidence” in Canada.
“Small businesses are being crushed by rising costs, labour shortages and excessive government red tape, all made worse by years of NDP incompetence,” Dew said.
Dew also used the occasion to call for “new management” and criticize the appointment of a new cabinet committee, whom he accused of possessing “virtually zero business experience.”
The committee includes among others B.C. Finance Minister Brenda Bailey, who previously worked in the tech sector. Dew also questioned “pushing COVID-style spending” in referring to comments from Premier David Eby.
“Through COVID-19, we supported businesses here in British Columbia with grants to be able to get through,” Eby said Tuesday. “The federal government had loans, they provided people support who were laid off through employment insurance. These are the kind of responses we expect through this period.”
Several experts had previously praised the additional economic stimulus, which the spending during COVID had created. The spending, however, also contributed to inflation during the post-COVID-period.
Black Press Media has reached out to the provincial government for comment and will update this story.
More to come.
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