New Brunswick forecasts $599M deficit as Trump tariff threat looms

Premier of New Brunswick Susan Holt, accompanied by other Council of the Federation members, speaks to reporters at the Mayflower Hotel in Washington, Wednesday, Feb. 12, 2025. THE CANADIAN PRESS/AP-Ben Curtis

FREDERICTON — A $50-million contingency fund to deal with U.S. tariff threats has caused New Brunswick’s projected deficit for the coming fiscal year to balloon to nearly $600 million.

Finance Minister Rene Legacy says the “daily pivoting in direction on tariffs” from U.S. President Donald Trump makes the contingency fund necessary.

The provincial Liberal government’s first budget since winning election in October comes in the midst of a trade war with the United States and the threat of a sweeping 25 per cent tariff on goods from Canada.

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

The projected deficit of $549 million reaches $599 million with the contingency fund, up from the nearly $400-million deficit forecast for the fiscal year ending March 31.

While building “flexibility” in the budget for challenges brought on by the trade war, Legacy says the government will keep its main health-care promise, earmarking $4.1 billion for the department -- about $293 million more than last year.

The Canadian Press