Nova Scotia to introduce budget today as potential trade war looms with U.S.

Nova Scotia's Progressive Conservative government is planning its first post-election budget Tuesday amid economic uncertainty created by the threat of tariffs from U.S. President Donald Trump. John Lohr fields a question in Halifax on Wednesday, Oct. 20, 2021. THE CANADIAN PRESS/Andrew Vaughan

Halifax — Nova Scotia’s Progressive Conservative government is presenting its post-election budget today amid economic uncertainty created by tariff threats from United States President Donald Trump.

The budget for the 2025-26 fiscal year comes after Premier Tim Houston’s party won an expanded majority on Nov. 26, campaigning on promises to cut taxes and limit electricity rate hikes.

But that was before Trump threatened to impose 25 per cent tariffs on Canadian goods in March — a move that will likely lead to Canadian retaliatory tariffs — and the budget is being watched to see how the province will respond.

Nearly 70 per cent of Nova Scotia’s exports from January to September 2024 went to the United States, leaving the province’s economy vulnerable to a trade war.

The premier’s message has shifted recently to calling for a “resource-focused” economy, with the Tories pledging to work harder to develop hydrogen, offshore wind, and critical minerals.

As well, the province’s steady population growth in recent years, which has helped fill government coffers, has started to slow.

This report by The Canadian Press was first published Feb. 18, 2025.