On Tuesday, B.C. Finance Minister Mike de Jong painted a picture of a province on solid economic footing, the only province with a triple-A debt rating and the best job creation record in Canada.

However, de Jong also highlighted a concern with its biggest trading partner, the United States, which accounts for nearly 54 per cent of B.C.’s exports.

The budget noted there is significant uncertainty surrounding the U.S. economy and its trade relationship with B.C. given the new administration led by President Donald Trump. The new president, a real-estate developer and former television reality host, has raised the spectre of protectionist measures, including re-negotiating trade agreements with Canada.

“The U.S. is a bit of a wild card right now,” said de Jong. “If that trade (with the U.S.) is impacted, it’s going to have an effect on us.”

However, De Jong also pointed to B.C.’s diversified economy, where upticks in the technology, aerospace and agriculture sectors could offset declines in other sectors, and where trade with Asia is more important than for other provinces.

That diversification will be important because natural resource sector revenues – where the U.S. is a significant market – are expected to drop to $2.32 billion in 2017-18 from $2.562 billion this fiscal year.

Natural gas royalties are expected to see an increase to $237 million in 2017-18 from $159 million in 2016-17 because of rising prices. But the take from natural gas in total would fall because the sale and lease of Crown and drilling rights is expected to drop significantly to $353 million in 2017-18 from $623 million in 2016-17.

Premier Christy Clark’s much-touted new liquefied natural gas (LNG) export industry is not part of the budgetary picture or economic outlook.

The budget notes economic and revenue forecasts do not reflect any incremental activity or revenue for LNG development.

Last week, the premier promoted benefits agreements with the Lax Kw’aalams and Metlakatla First Nations potentially worth hundreds of millions of dollars for their support of LNG development in their traditional territories in northwest B.C.

But the LNG export industry – meant to capitalize on new markets in Asia, and lower natural gas prices in B.C. – has failed to materialize.

LNG projects in B.C. have been hampered by reduced global demand, competition from new entrants such as the U.S., and the need for energy companies to reduce capital spending after oil prices plummeted in 2015.

Revenues from mining in minerals and coal are forecast to decrease, in particular because the price for metallurgical coal, used in steel making, is expected to fall.

Revenues from forestry are expected to drop to $852 million this coming fiscal year from $859 million the year before, although there’s a forecast increase in the next two years.

However, the forestry forecast does not take into account the softwood lumber trade dispute with the U.S. The previous lumber agreement ended in 2015 but there was a one-year roll-over.

B.C. benefited from a huge take in the property transfer tax in 2016-17, at $2.025 billion, a result of B.C.’s red-hot real estate market. However, as the market is expected to moderate, revenues from the property transfer tax are forecast to drop to $1.542 billion this fiscal year.

As part of the business tax cuts, the B.C. Liberal government announced it will phase in an elimination of the provincial sales tax on electricity purchases as recommended by the Commission on Tax Competitiveness.

On Oct. 1, the rate will be cut in half to 3.5 per cent – and 18 months later it will be eliminated.

The small business corporate tax will be cut to two per cent from 2.5 per cent.

Businesses will also benefit from the reduction to Medical Services Plan premiums.

Business groups – including the Independent Contractors and Businesses Association of B.C., the Canadian Federation of Independent Businesses and the Council of Forest Industries – welcomed the tax cuts.

The Greater Vancouver Board of Trade gave the budget a grade of A.

“British Columbia continues to lead Canada in terms of financial management and economic strength, giving our business community a stable foundation on which to build,” said board president Iain Black.

Environmental groups said the budget failed to protect the environment or address climate change. “While the government talks a big game on climate change, our increasing emissions and support for industries like fracking tell a different story,” said Wilderness Committee campaigner Torrance Coste.

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