Canadian Provinces Adjust Budgets to Brace for Potential U.S. Tariffs

Provincial governments across Canada are implementing spending cuts, tax changes, and contingency plans as the U.S. considers imposing 25% tariffs on Canadian exports.

• British Columbia and Nova Scotia have announced fiscal measures to prepare for economic uncertainty tied to potential U.S. trade tariffs.
• Nova Scotia's $17.6 billion budget includes $500 million in tax cuts, a $200 million reserve fund, and increased capital spending on health care and public housing.
• British Columbia is conducting a spending review, freezing civil service hiring, and seeking to reduce reliance on U.S. trade by exploring new international markets and interprovincial trade opportunities.
• Ontario's Progressive Conservative government, facing a snap election, has proposed a tariff bailout plan, increased infrastructure spending, and tax deferrals for businesses, despite a projected $6.6 billion deficit for 2024-25.
• The looming tariff threat has prompted calls for economic diversification in areas like critical minerals, hydrogen, and wind power, with provinces emphasizing the need for resilience in the face of U.S. protectionism.

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