Ontario budget coming on May 15

Doug Ford’s Ontario Budget to Address Impact of Trump’s Trade War

Ontario’s government under Premier Doug Ford will be presenting the province’s budget on May 15, as confirmed at Queen’s Park on Thursday. The budget will be tabled amidst the chaos of U.S. President Donald Trump’s trade war, which experts have warned will have a significant impact on Ontario’s economy.

Recent reports from the Financial Accountability Office (FAO) of Ontario have highlighted the potential consequences of U.S. tariffs and Canada’s response. The FAO projects that these trade actions could result in a loss of 68,100 jobs in the province this year.

With this being the Ford government’s first budget since securing a third-straight majority government in February, Finance Minister Peter Bethlenfalvy is expected to outline the proposed spending during a keynote address at the Empire Club of Canada on May 12.

Ford has acknowledged the need for careful consideration of priorities in the current economic climate, suggesting that achieving a balanced budget may not be feasible at this time. He indicated a shift away from the previous goal of balancing the books by 2026-2027, as the government had initially projected a $1.5 billion deficit for this year’s budget.

The FAO report underscores the uncertainty surrounding the impact of tariffs on Ontario’s economy, emphasizing the need to assess the magnitude, breadth, and duration of tariff coverage, as well as the responses of businesses and households. U.S. tariffs are forecasted to raise Ontario’s unemployment rate by 1.1% from 2025 to 2029 compared to a scenario without tariffs.

As Ontario prepares to navigate the challenges posed by Trump’s trade policies, the upcoming budget will play a crucial role in addressing the economic implications and prioritizing the province’s needs.

For more insights on the Ontario budget, Queen’s Park reporter Shawn Jeffords offers further analysis on what to expect.