Nearly half of B.C. small businesses dissatisfied with tariff response: survey

Upset with tariff response

Photo: Rob Kruyt, BIV, BIV.

More than half of small business respondents want an expansion of BuyBC initiatives, according to a new survey released by The Business Improvement Areas of B.C.

Many B.C. small businesses want stronger action from the provincial government in response to U.S. tariffs, according to a new survey.

The Business Improvement Areas of B.C. (BIABC), which represents 55,000 small and medium-sized businesses across the province, released results this week from more than 260 business respondents surveyed in late November 2025.

The survey found that 44 per cent of respondents are dissatisfied with the provincial government’s response to tariffs, while 58 per cent want an expansion of the BuyBC program to help businesses better withstand trade disruptions.

“Many businesses continue to report challenges related to sourcing, rising costs and ongoing supply-chain uncertainty,” BIABC said in a statement.

“We acknowledge the province has signed some narrowly focused agreements; however, broad arrangements that encourage free trade and standardized processes across borders remain elusive.”

Last November, the province announced the Look West strategy and signed the Canadian Mutual Recognition Agreement (CMRA). While these were positive steps, the survey highlighted gaps between government signalling and what small businesses say they urgently need on the ground, according to Jeremy Heighton, president of BIABC.

BIABC is calling on the government to release a tariff response strategy outlining the supports and tools local businesses can leverage to navigate trade uncertainty, and explore ways to better utilize supply chains within B.C.

The organization is also urging the government to make tariff-response funding available to businesses of all sizes. The PacifiCan funding is currently only available to businesses with 10 or more employees, while BIABC’s survey showed that 85 per cent of respondents don't meet the criteria.

“There's an opportunity for the provincial government in this window right now to advance the strength and resiliency in businesses and the economy, to put us in a better position that's outside the forces that are in play,’” Heighton said.

Heighton also asked the government to engage directly with small business owners on tariff responses, noting that the province’s dissolution of the Small Business Roundtable in December has made that more difficult.

Although U.S. tariffs directly impact only certain industries and most B.C. goods remain exempt, Heighton said the uncertainty is eroding business owners’ confidence to invest, disrupting supply chains and driving up prices.

According to a survey released this week by Merchant Growth, an online financing platform, 66 per cent of B.C. small business clients it surveyed said they have scaled back U.S.-related activities, including sales and suppliers, and nearly half (45 per cent) said tariffs and trade disruptions decreased their profit margins over the past 12 months.

Meanwhile, 52 per cent said they incurred between $5,000 and $100,000 in additional costs due to tariffs and trade-related fees over the past 12 months, and 53 per cent said they plan to raise prices in the next six months.

Heighton said B.C. needs to take more concrete steps to remove interprovincial trade barriers, including adding food, alcohol and services to the CMRA, and expand its BuyBC program to strengthen in-province supply chains.

“It's mostly focused on retail. There's another piece of the puzzle, which is the suppliers,” said Heighton. The BuyBC Partnership Program provides up to $2 million annually to local producers to support marketing activities.

“There's an opportunity for the government to [look at], how do we make sure that a supplier of meat, for example, in the interior, can connect to a supermarket in Vancouver?”

Heighton said a more certain, vibrant small business community has a ripple effect on the wellness of the province.

“Small business in B.C. makes up most of our commercial mainstream. These are companies that support and fund art, culture, sports, events, all sorts of activities in our community," he said.