The Business Development Bank of Canada’s chief economist, Pierre Cléroux, visited Prince George on May 15 to meet with local business owners and entrepreneurs.
He also stopped by the Prince George Chamber of Commerce and the Northern Regional Construction Association, where he presented his economic outlook for the region.
Cléroux spoke with The Citizen during his visit and shared the concerns and perspectives of local entrepreneurs.
“There are a lot of questions about the tariffs and their impact on the economy,” said Cléroux. “Everybody’s trying to understand where this is going. It’s very hard to fully predict, but we talked a bit about the current impact and what we should expect for the economy in 2025.
“One of the effects of the tariffs is the uncertainty we now have in the economy. Businesses are cautious about investing, and consumers are also a bit hesitant. Local businesses are impacted if they see fewer sales than expected. Also, some are paying tariffs when they import goods from the U.S.
“This affects different sectors of the economy, including restaurants. For example, if you import certain goods from the U.S., you now pay a 25 per cent tariff. On one hand, your costs are increasing; on the other, you’re facing lower demand.”
Cléroux added that it’s not always possible to "buy local," especially given Prince George’s northern location and the cost of switching importers. As a result, the potential impact of tariffs can be more severe.
“Sometimes it’s only on one or two products; sometimes it’s more,” he said. “That’s the impact — businesses are paying tariffs on what they buy from the U.S. Sometimes they’re able to switch to another supplier, but that’s not always possible.
“There are some products we just don’t make in Canada. For example, we don’t manufacture a lot of aluminum products. So you have to buy from the U.S., or from China — but the delays and transportation costs can be significant. It’s not always easy to switch to another country.”
Despite some "doom and gloom" predictions, Cléroux said he remains optimistic about the long-term effects of tariffs and believes more stability is ahead.
“I think the situation is becoming a bit more stable,” he said. “Consumers are starting to feel a bit more confident about the economy. It’s a bit clearer now than it was two months ago. I think this stability will benefit both consumers and businesses. Hopefully, in the next few months, the situation will improve, consumers will start spending again, and businesses will start investing again.”
Cléroux also said British Columbia — and Prince George in particular — is well positioned to recover and grow amid global trade uncertainty.
“We have to realize the Canadian and BC economies will continue to perform well,” he said. “We have low inflation, lower interest rates, and the economy is still performing. We should feel confident — especially knowing tariffs won’t affect everything. Some sectors may suffer, but overall, the economy continues to grow in BC.
“We need to better understand and explain that reality.”
Cléroux said Prince George is particularly well placed to benefit from new investments in energy and mining.
“The economy is performing well,” he said. “There are several investments in the mining and energy sectors that will benefit the region. Governments are accelerating these projects due to the current situation. Prince George is well positioned to benefit from this investment as a regional centre.
“The local economy is also much more diversified than it was a few years ago.”
He added that members of the Chamber of Commerce were surprised by his upbeat outlook.
“Apparently I’m a bit more positive than other economists,” Cléroux said with a laugh. “They found it interesting. This isn’t about being optimistic for the sake of it — it’s what we see in the numbers.
“For example, the number of jobs in BC continues to increase, despite the uncertainty and tariffs. The economy is creating jobs and moving in the right direction. We’re not going to have an amazing year in terms of growth, but the economy will grow. We’re not heading into a recession. That’s why I think it’s important to share this message and explain what’s really going on — so people can feel more confident.”
When asked about his visit to Prince George, Cléroux said meeting with local entrepreneurs was a high point of the trip.
“Meeting people, meeting entrepreneurs — that’s what I enjoy most,” he said. “To hear their stories and see how passionate they are about their businesses — that was the highlight for me.”
