Oct 30, 2026 1:52 PM - Connect Newsroom - Ramandeep Kaur
U.S. tariffs are having a significant impact on Ontario’s annual budget, with Premier Doug Ford’s government projecting a deficit of $16.9 billion for the 2026-2027 fiscal year in its Fall Economic Statement.
The projected deficit is approximately $3.1 billion higher than the $13.8 billion forecast in the March budget.
Ontario Finance Minister Peter Bethlenfalvy said the ongoing trade war with the United States and U.S. tariffs are the main reasons behind the widening deficit. He said American tariffs have hit Ontario’s steel, automotive and manufacturing sectors particularly hard.
Ontario’s growing deficit is also being viewed as a warning for other provinces facing similar economic challenges due to U.S. tariffs.
Meanwhile, the federal government is set to present its budget next Thursday. Ottawa is also facing the challenge of controlling spending amid slowing economic growth.


