Unsurprising to British Columbians who are all too aware of the current U.S.-Canada trade dispute, Premier David Eby’s 2025 budget is focused on economic defence. The target? U.S. tariffs. The remedy? Eby’s suite of retaliatory measures to ostensibly mitigate the impact on the provincial economy. Despite the province’s goal of a diversified trade profile (a still slim 52.8 per cent majority of B.C.’s exports going down to the U.S. in 2024), critical sectors including natural gas, electricity and softwood lumber remain highly exposed.
In Premier Eby’s 2025 budget scenario, U.S. tariffs could reduce the province’s GDP by an estimated $43 billion by 2029, resulting in a chilling projection the elimination of 45,000 jobs in that time, and an unemployment rate of 6.7 per cent unemployment next year.
How does Eby’s government intend to respond? Accelerate $20 billion in projects (resulting in 8,000 projected jobs), diversify export markets, specifically with Eby’s new agriculture and food economy task force, and launch a coordinated “Team Canada” approach to counter tariffs.
"A strong, diversified economy for B.C."
Coupled with the defensive tone and diversification goals, the remainder of the 2025 budget fell under the key theme of “made-in-B.C.” with clear goals of protecting the workforce and proactively building long-term economic strength.
In addition to the previously announced fast-tracking of 18 major critical and minerals projects worth approximately $20 billion, Premier Eby is charting a course towards a more self-sufficient and diverse economy.
Specific new investments include:
- $142 million over three years towards transportation and transit “core maintenance” upgrades, including $47 million for B.C. Transit buses and handyDART service in 130 communities outside the Lower Mainland.
- $30 million over three years for the Integrated Marketplace Initiative, connecting tech companies with partners to scale up, test products in real-world environments, and expand into new markets.
- Higher investment limits under the small business venture capital tax credit, plus a temporary $15M boost for 2025–27, strengthening B.C.’s entrepreneurial ecosystem.
Support for families and communities
In an ongoing attempt to protect reputation with the bona fide, final highlights included lowering costs to families, while providing affordable homes in stronger and safer communities.
$318 million will be topped up over three years to B.C. Builds (previously funded with $198 million in 2024 over three years), the housing program will speed up the development of new homes for middle-income people throughout B.C. Six projects have begun construction. An additional 11 will be underway in 2025-26.
The Climate Action Tax Credit will continue to help lower-income British Columbians while the national carbon tax remains in place. All the incremental revenue from the federally required April 1, 2025, carbon tax increase will continue to go back to people through the tax credit.
Budget 2025 provides $235 million in new investments to keep people and communities safe through justice and public safety programs.
Additional funding of $67 million over three years will go towards community safety programs, which includes a new community safety and targeted enforcement program pilot to target robbery, shoplifting and other property crimes, providing police with tools to tackle street disorder and support safer downtowns and commercial areas in communities throughout B.C.
In closing, the three pillars of priority are clear:
a) Build Baby Build;
b) Keep the U.S. out; and
c) Increase social supports for families.
A – B + C = a record $11.6-billion deficit.
Premier Eby is displaying an attempt to navigate a dramatic shift in the government treasury. His predecessor left a healthy surplus but now the province appears to be facing permanent deficits into the foreseeable future. This risky adaptation strategy will test the patience and pocketbooks of voters. More importantly, organizations looking to do business in Canada’s most beautiful province will need seasoned experts to help seize the opportunities and avoid getting caught in the proverbial swirl Premier Eby’s heavy-handed and heavily indebted response to a trade war with no end in sight. Strap in!
For tailored guidance through B.C.’s evolving political and economic climate, trust our Public Affairs experts. Secure your organization’s success today.
