Canada’s provincial governments have enough fiscal firepower to respond to looming U.S. tariffs without supersizing their debt burdens, a new report says.
The analysis released Tuesday from Desjardins Economics predicted upcoming provincial budgets will be dominated by plans to prepare for an unknown 2025 as promised tariffs from U.S. President Donald Trump put a cloud over fiscal forecasts.
“The provinces are heading into a budget season with the type of uncertainties we haven’t seen since the pandemic,” said Laura Gu, senior economist at Desjardins, in an interview.
Nova Scotia kicked off provincial budget season last week and offered the first peek at how the provinces are preparing for threats of sweeping tariffs on Canadian exports to the U.S….