IN THE NEWS: ICBA Responds to Trump Tariffs and B.C. Budget

A lot happened yesterday, so a quick recap of ICBA’s work on the Trump Tariffs and B.C. Budget:

• ICBA News Release on the B.C. Budget
• In the Toronto Sun (and elsewhere), Jock makes the case that the Trudeau era was a “lost decade” for Canada and offers his economic prescription for the next Prime Minister.
• In Business in Vancouver, Chris argued for radical reform in government oversight of homebuilding
• Our budget concerns quoted in the Journal of Commerce
• Jock on CFAX Radio for you audio learners
• Our fears on the tariffs slowing homebuilding made the Vancouver Sun
• Jock on the hollowing out of corporate Canada (MSN)
• Jock on how Metro Vancouver will fare under tariffs (MSN)

We sent our members an alert yesterday on our view of the BC Budget and Trump Tariffs. Here’s the TL;DR version:

• 1. BC Budget Ignores Economic Reality – The budget forecasts 1.8% GDP growth in 2025 and 1.9% in 2026, but these projections are already meaningless in light of the Trump administration’s new 25% tariffs on Canadian goods. With Canada retaliating in kind, B.C. is now staring down the barrel of a recession that this budget doesn’t account for.
  2. Runaway Deficits and Debt – Even before the trade war, B.C. was planning $10 billion deficits for years to come. Premier Eby has doubled the province’s debt-to-GDP ratio in just five years—without a plan to rein it in. With economic conditions now deteriorating, expect the province’s finances to spiral further out of control.
  3. Tariffs Will Hammer the Construction Industry – Canada’s retaliatory tariffs will immediately raise the price of key construction materials, including flooring, wood products, fasteners, appliances, and machinery. The next phase could see steel and aluminum added—devastating supply chains and further driving up costs.
  4. Housing Crisis Will Worsen – B.C. is already struggling to build enough homes, with housing starts stagnating below 50,000 per year. Higher construction costs from tariffs and increasing municipal fees will make it even harder for builders to deliver affordable housing.
  5. The Government’s Spending Priorities Are Wrong – Instead of tackling B.C.’s regulatory bloat and cost burdens, the NDP is throwing more money at an inefficient public sector while failing to address fundamental economic challenges like declining productivity and waning private-sector investment.
  6. Public Sector Capital Spending Ramps Up, But At What Cost? – The budget increases infrastructure spending to $20 billion per year, but with no plan to reform public-sector contracting. ICBA is calling for the elimination of costly and restrictive Community Benefit Agreements (CBAs) to ensure taxpayer dollars go further.
  7. B.C. Needs a Pro-Growth Strategy Now – With a recession looming, the government must pivot immediately to cut red tape, fast-track housing and infrastructure approvals, and lower the cost of doing business. ICBA is demanding urgent action to protect jobs and investment before it’s too late.