Opinion: Eby’s trade war blame game masks years of economic failure
B.C.’s small businesses are facing a perfect storm. The economic pressures caused by rising costs, deteriorating affordability, rock-bottom business confidence, and the looming threat of U.S. tariffs are eroding the foundation of our economy.
Recommended Videos
British Columbians are rightly concerned about how these challenges will impact their livelihoods.
Unfortunately, Premier David Eby’s government has failed to provide the leadership and solutions to navigate these turbulent times. Their trust with the business community is tenuous, and years of economic mismanagement have left us dangerously unprepared for a tremor, much less the Big One.
B.C.’s economic resilience depends on its small and medium-sized enterprises (SMEs), which employ over one million people and represent 98 per cent of all businesses in the province. Yet, a recent survey by the Canadian Federation of Independent Business (CFIB) reveals that B.C.’s SMEs are struggling. Over 74 per cent report increased operational costs due to rising inflation and government policies, and more than two-thirds anticipate raising prices to stay afloat, which will put upward pressure on the cost of living.
This government’s years of indifference and inaction have compounded these issues, leaving businesses and families to shoulder a growing burden.
The looming U.S. tariffs layer an external threat on top of a self-inflicted economic malaise.
With the United States accounting for 77 per cent of Canada’s exports, any trade relationship disruption will have far-reaching direct and indirect consequences. Nearly half of B.C.’s small businesses that trade with the U.S. report that tariffs would force them to increase prices, limit product availability, and sometimes lay off staff. The CFIB estimates that up to 17 per cent of SMEs could face job losses if retaliatory tariffs are implemented.
Provincial Finance Minister Brenda Bailey’s suggestion to impose retaliatory tariffs on American goods such as bourbon and orange juice does little to protect B.C. businesses or jobs. Such performative moves are shortsighted distractions that fail to address the root issues affecting trade and economic security.
Clearly, the NDP government wants to fight with U.S. President Donald Trump for political gain rather than face overdue accountability from their opposition in B.C.’s Legislature.
The challenges we face require bold, focused, and serious leadership by people who actually understand business and economics. British Columbians deserve a government that will prioritize reducing costs, enhance competitiveness, and secure our economic future.
The CFIB’s recommendations provide a solid foundation that the province should seriously consider. Among them are immediate tax relief for small businesses, such as reducing the employer health tax threshold to $1.5 million and exempting PST on capital investments in machinery and equipment. Removing stubborn interprovincial trade barriers, which currently act as an effective 23 per cent tariff on B.C., would inject $7.6 billion into the provincial economy and generate $1.7 billion in additional tax revenue.
Strengthening supply chains and diversifying trade relationships beyond the U.S. market are also critical steps to building resilience. This requires overcoming our inability to make timely decisions on resource projects — across the board, not just on cherry-picked political favourites.
Fiscal sanity must also return to the forefront. Under Premier Eby’s leadership, the province is burdened with a historic $9.4-billion deficit, a stark contrast to the $5.7-billion surplus left by the late former premier John Horgan, who himself inherited a $2.7-billion surplus. Eby has engineered a structural deficit of generational proportions, perching a bigger and bigger government on the back of a flatline private sector and dicey capital investment conditions.
Committing to balanced budgets is essential for sustainable economic growth. At the same time, addressing legitimate concerns raised by U.S. policymakers around issues such as border security and the fentanyl crisis would not only improve safety but also strengthen B.C.’s standing as a reliable trade partner.
Denying drugs are smuggled through our ports because you don’t like the American president who spotlighted it is like letting your house burn because you don’t like the tone of the neighbour yelling “fire.”
Leadership means doing the hard work to secure meaningful outcomes, not focusing on divisive rhetoric or symbolic gestures.
By his own admission, Premier Eby required a near-death political experience to discover the existence of the private-sector economy that pays for his runaway spending. He has paid lip service to the business community for the last seven weeks, after seven years in which the B.C. NDP produced near zero private sector job growth.
B.C.’s small businesses need more than talk — they need action. They need a government that works collaboratively with stakeholders and other jurisdictions to create an environment where businesses can thrive, families can prosper, and the economy can grow sustainably.
Premier Eby’s policies, politics, and posturing are putting British Columbians at risk. If past performance is any guide, he will spend the next four years making things up as he goes while looking for someone else to blame for his own decisions and his own failures. B.C. deserves better.
Gavin Dew is the B.C. Conservative critic for Jobs, Economic Development and Innovation.