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New Brunswick’s Liberal Party is set to present its inaugural budget today, following their electoral victory in October. This budget arrives amid escalating tensions in trade relations with the United States, creating a highly challenging environment for fiscal planning, according to Premier Susan Holt.
The backdrop for this fiscal discussion involves the imposition of substantial tariffs by the U.S., specifically a 25 percent tax on steel and aluminum imports from Canada and other nations. Moreover, President Donald Trump has indicated potential additional tariffs on Canadian goods, which may take effect in April.
New Brunswick’s economy is notably intertwined with the state of Maine, with roughly $12 billion in exports flowing across the border each year. Premier Holt has warned that these tariff threats jeopardize this crucial trading relationship and could hinder the province’s economic growth.
Despite these tumultuous conditions, Holt has committed to ensuring that the new budget honors the promises made during the election campaign, particularly in terms of increasing health-care funding.
Earlier this year, the Liberal government projected a deficit of nearly $400 million for the current fiscal year, primarily driven by rising health-care expenses.
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As New Brunswick navigates these complexities, the impact of international trade dynamics on local economies continues to be an area of significant concern and discussion among policymakers and stakeholders.
Source
globalnews.ca