"What the hell is happening?"

Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, stepped to the mic to introduce B.C. Finance Minister Brenda Bailey on March 5. He was trying to capture the mood as Bailey prepared to address about 100 business leaders in the Hotel Grand Pacific ballroom following the unveiling of the provincial budget the same day the U.S. dropped onerous, sweeping tariffs on the Canadian economy.  

"Tariffs and a budget on the same day – welcome to chamber land," Williams said.  

Bailey acknowledged that the outlook appears grim, with real GDP projected to decline by up to $43 billion by 2029, along with 45,000 job losses and an annual revenue drop of $1.7 billion to $3.4 billion if the government does not intervene. However, she assured business leaders the province has plans to address the economic impacts of tariffs.  

"These tariff threats are very significant," Bailey said. "I say threats because, of course, they’re in place, [but] how long they’re in place, the duration, whether there’s going to be carve-outs – there are many questions that remain to be answered.

"The good news is our economy is built to withstand."  

The minister highlighted B.C.'s diverse economy, its relatively low exposure to tariff impacts compared to other provinces, and a $4-billion annual contingency fund to "help manage unexpected expenses like higher demand for services, costs for the new collective bargaining mandate and emerging priorities."  

"I think that money is in place to actually be available to pivot into something that becomes an issue they aren’t aware of, or they change their priorities based on the tariff situation or any other unknown," Williams said.  

They say comedy, like good writing, comes in threes, and so does the province’s plan to mitigate economic collapse: Strengthen, diversify, respond, outline the three-pronged tariff approach, which will prioritize expediting new projects, working with business leaders, and improving inter-provincial trade, while continuing dialogues around cross-Pacific trade. 

"People told us in the last election, ‘We like what you’re doing in regards to housing, social services and building up health care, but you need to work more closely with the business community,’" Bailey said. She added that her own background in business was likely a key factor in her appointment as finance minister. 

"[The premier] had a near-death experience, and one of the big takeaways was we must do a better job working with business."  

This was unusual in the eyes of Williams, who had not expected such a pro-business stance from the NDP government.  

"We get the impression the last election scared them – because they almost lost," he said.  

"As the minister said today, ‘We are here to work with business,’ which is not something that has normally been said by this government in the past or this party in the past. [They've] never really been identified as the party of business."  

To support small businesses in B.C.’s downtowns, the province will invest in community safety initiatives, including a pilot program to address shoplifting, theft and mischief. The government will also fund housing and support services for unhoused populations.  

The budget includes $168 million for public safety and justice programs, which will increase policing and double the number of seats at the Justice Institute of British Columbia.  

"We’ve heard from many small businesses that they’re considering closing because of some of the challenges they’ve faced," Bailey said. "We don’t want that; you don’t want that."  

As for mental health and addictions support, the minister highlighted that the work was continuing to support B.C.’s most vulnerable, as they continue to develop secure care facilities.  

"We put a billion dollars into mental health and addictions in this budget, and much of the work that’s happening on recovery and building up recovery beds is ongoing," she said. "There’s money in the system to keep opening beds. It’s so important."  

Despite these efforts, some leaders, including Downtown Victoria Business Association CEO Jeff Bray, said the budget did not go far enough.  

"We’re not seeing the kind of strong and immediate investment we need in mental health and addictions," Bray said.  

"The issue around homelessness, addictions and petty crime, which was addressed at the Q&A panel, is something that we want to see a lot more immediate investment in. And don’t let perfect be the impediment to progress."  

was an attitude that seemed to carry over to the business community, as some were encouraged by the new commitment to work with business. Others were given pause by the increasing deficit, something many like Bray fear will lead to higher taxation.  

"We need to be an attractive place for businesses, to be able to have employees moving here," he said.

"We’re going in the other direction, and there’s nothing in this budget that’s going to incentivize people to come to British Columbia to invest or be able to live here."