FREDERICTON — New Brunswick’s Liberal government is set to unveil its first budget since securing victory in the October election, facing significant economic challenges exacerbated by ongoing trade tensions with the United States.
Premier Susan Holt has acknowledged that crafting this budget has been particularly challenging due to the economic instability caused by the U.S.-Canada trade dispute. The conflict escalated after the U.S. imposed a 25 percent tariff on Canadian steel and aluminum, with President Donald Trump further threatening additional tariffs on other Canadian exports as early as April.
New Brunswick, which exports approximately $12 billion in goods to its neighboring state of Maine each year, is particularly vulnerable to these trade disruptions. Holt has expressed concern that the tariff threats have unsettled the province’s vital trading relationship, posing a potential risk to economic growth.
Despite these uncertainties, Holt has reaffirmed her government’s commitment to delivering on key campaign promises, particularly in the area of health care. During the election, the Liberals pledged to increase funding for the province’s strained health-care system, and Holt has assured residents that these commitments will be reflected in the upcoming budget.
In February, government officials projected that New Brunswick’s current fiscal year would end with a deficit approaching $400 million, largely driven by surging health-care costs. The province has been grappling with rising expenses for medical services, staffing shortages, and the growing demand for health care, all of which have placed additional strain on public finances.
As the Liberal government presents its financial plan, all eyes will be on how it balances its ambitious health-care investments with the economic headwinds posed by external trade pressures and a widening deficit.
