New Brunswick Predicts $599M Deficit Ahead of Potential US Tariff Threat

March 18, 2025 TruthUSA

A $50-million contingency fund to address threats of U.S. tariffs has caused New Brunswick’s projected deficit for the upcoming fiscal year to soar to nearly $600 million.

Finance Minister René Legacy explains that the ever-changing stance on tariffs from U.S. President Donald Trump makes the contingency fund essential.

The provincial Liberal government’s first budget since winning the election in October comes during a trade war with the United States and the looming threat of a 25 percent tariff on Canadian goods.

Total revenues for the province in 2025-26 are budgeted at nearly $13.8 billion, while total expenditures before the contingency fund are estimated to be $14.3 billion.

The projected deficit of $549 million rises to $599 million with the inclusion of the contingency fund, up from the approximately $400-million deficit predicted for the fiscal year ending on March 31.

While incorporating “flexibility” in the budget to handle challenges posed by the trade war, Legacy emphasizes that the government will uphold its primary health-care commitment by allocating $4.1 billion to the department, about $293 million more than the previous year.