Latest news with #OntarioAccount
Yahoo
16-05-2025
- Business
- Yahoo
Ontario budget aims to 'tariff-proof' economy as U.S. trade uncertainty weighs
-- Ontario's 2025 budget marks one of its most ambitious efforts to shield the province from growing cross-border trade uncertainty, laying out over $30 billion in tariff-related measures while projecting a widened deficit of $14.6 billion. Released Thursday, the budget, titled 'A Plan to Protect Ontario,' focuses extensively on strategic capital investment, business support, and industrial self-reliance in response to the economic threat posed by U.S. tariffs. With real GDP growth projected to slow to just 0.8% this year, down from robust expansion in 2024, the government under Premier Doug Ford has prioritized stimulus in the form of industrial policy, tax credits, and emergency funds for affected companies. 'This spending is needed to weather the storm,' Finance Minister Peter Bethlenfalvy said, referring to the U.S. tariffs, adding the goal is to make Ontario's economy 'more resilient and self-reliant.' At the center of the budget is a sweeping suite of manufacturing and business programs, including a $5 billion Protecting Ontario Account for distressed sectors and an enhanced Ontario Made Manufacturing Investment Tax Credit worth $1.3 billion over three years. Another key component defers select provincial taxes for six months starting April 2025, unlocking up to $9 billion in liquidity for 80,000 businesses expected to face trade-related disruptions. CIBC (TSX:CM) economist Andre Grantham highlighted the fiscal consequences of this proactive stance, noting, 'Ontario's budget deficit is projected to widen to $14.6 billion in the current fiscal year (1.2% of GDP)… due in part to an expected tariff-led slowdown in economic growth as well as measures to help support households and businesses.' He added that contingencies embedded in the budget reflect 'the uncertain economic outlook,' with downside risks tied closely to the trajectory of U.S. trade policy. The capital side of the budget is anchored by over $200 billion in infrastructure projects over ten years, including $61 billion for public transit, $30 billion for highways, and $56 billion in healthcare facility upgrades. Uniquely, the government aims to promote domestic industry by requiring made-in-Ontario materials for publicly funded builds, including cement, steel, and forestry goods, as a further buffer against foreign supply chain volatility. In a rare bipartisan consensus on the challenge ahead, opposition leaders acknowledged the need to respond to tariff-related pressures while questioning the budget's priorities. Ontario NDP Leader Marit Stiles said, 'This budget is a test of whether this government will choose to strengthen Ontario and build a tariff-proof future over vanity projects and delaying critical infrastructure.' Liberal Leader Bonnie Crombie added, 'Will Doug Ford invest in your family—or in his friends?' Ontario's financing strategy reflects its evolving fiscal profile, with $59.8 billion in total funding requirements this year, including $42.8 billion in long-term borrowing. While that is down from the $49.5 billion issued in 2024, padded by pre-borrowing, net debt is expected to increase by $33 billion this year, pushing the net debt-to-GDP ratio to 37.9%, though still under the government's 40% ceiling. Economists warn that investor sentiment could sour if tariffs persist or deepen, disproportionately affecting trade-dependent provinces like Ontario. Creating a backstop through expanded contingency funds and industrial incentives, the 2025 budget attempts to signal resolve, but the ultimate success may depend less on Queen's Park... and more on Washington. Related articles Ontario budget aims to 'tariff-proof' economy as U.S. trade uncertainty weighs Foreign investors retreat from Canadian securities as traders bet on U.S. bonds What are the key similarities and differences between 2025 and 2000
CBC
03-03-2025
- Business
- CBC
Ford doubles down on threat to cut off energy to U.S. amid spectre of trade war
Newly re-elected Premier Doug Ford doubled down Monday on his threat to cut off electricity flowing from Ontario to several American states if the U.S. moves ahead with tariffs. "If they want to try to annihilate Ontario, I will do anything — including cutting off their energy — with a smile on my face," Ford said during his first news conference since winning a third majority last week. Ontario is a major electricity exporter to New York, Michigan and Minnesota. "They need to feel the pain. They want to come at us? We've got to go back twice as hard," Ford continued. The comments came on the eve of , and 10 per cent on energy. The import levies could potentially devastate several key Ontario industries like auto manufacturing and steel production, as well as drive up retail prices and fuel more inflation. You can learn more about the impending tariffs here. Ford added his government is also prepared to implement a surcharge on every megawatt of energy states purchase from Ontario and "rip up" a $100-million deal with Elon Musk's Starlink internet company. The LCBO has already been directed to remove all American booze from its shelves if Trump moves ahead with his threats. He similarly urged consumers, retailers and municipalities to source goods from Ontario, and from elsewhere in Canada if they can't be found in the province. Ford said he is "asking politely" before he implements legislation that could require retailers to highlight Canadian-made products on their shelves. "So please, please work with us, or we're going to legislate it. And start onshoring goods from — you're bringing (goods) around the world — there's nothing we can't build here in Ontario, absolutely nothing," he said. WATCH | Ford on a possible trade war: Ford threatens retaliatory trade measures on alcohol, Starlink on eve of U.S. tariffs 5 hours ago Duration 1:49 Ontario Premier Doug Ford outlined his plan to 'win this tariff war' if Donald Trump makes good on his threat to impost a 25 per cent tariff on Canadian exports, saying he's willing to act on a range of issues — including, if needed, cutting off energy exports from Ontario 'with a smile on my face.' Ford was mum on whether Ontario would apply any retaliatory tariffs at the provincial level, but Ford again repeated his support for the federal government to go "dollar for dollar" in its response. Ontario's strategy for a trade war with the U.S. was central to the four-week, $189-million snap election campaign that came to a close last Thursday. The Progressive Conservatives platform included about $40 billion in new spending promises, with roughly half of that aimed at supporting industries and workers who could be hurt by tariffs. That includes a new $5-billion Protect Ontario Account, $10 billion in support for employers through a tax deferral, up to $3 billion more in payroll and premium relief and up to $40 million for municipalities. Ford makes false claim about election win When Ford triggered the election in late January, he appealed to voters for the "largest mandate in Ontario's history" to help his government navigate four years of the Trump administration. The PCs picked up 80 seats — a sizeable majority of 17, but only one more than at dissolution and three fewer than they won in 2022. Despite the result and costly price tag, Ford said Monday the election was "100 per cent" worth it. There's no question three straight majorities is a rare and impressive political feat in Ontario. It hasn't been done in the province in over 65 years. Speaking Monday, though, Ford claimed "no government in the history of Ontario were able to accomplish what we have accomplished." He pointed to the fact the PCs increased their vote share in three consecutive elections, with 40.5 per cent, 40.8 per cent and 43 per cent in 2018, 2022 and 2025, respectively.
