Sask. budget contains no tariff contingencies in face of 'erratic and unpredictable' Trump presidency
CBC
The "erratic and unpredictable" threats of tariffs from U.S. President Donald Trump have made this year's Saskatchewan budget difficult to project, according to Finance Minister Jim Reiter.
"This budget is being presented at a time of incredible uncertainty caused by the words and actions of the president of the United States on tariffs," Reiter said as he rose in the provincial legislature Wednesday to deliver his first budget as finance minister.
Reiter's budget stresses themes we've heard frequently from Premier Scott Moe: health, education and public safety.
A razor-thin surplus of $12.1 million means the 2025/26 budget, titled "Delivering for You," is projected to be balanced. But it does not factor in any fallout from American or Chinese tariffs, including a 100 per cent tariff on canola imports set to kick in Thursday.
Saskatchewan's approach is a departure from recent budgets in Alberta and B.C., which each featured dedicated contingency funds of $4 billion.
While America remains Saskatchewan's largest trading partner, with approximately $27 billion worth of exports crossing the border every year, Reiter said the fluidity of the tariff situation made it impossible to build the direct effects into this budget.
"We do not know whether the tariffs are going to last for three days, three months or three years, nor do we know at what rate these tariffs will be levied over time," the budget reads.
Instead, the province is banking on a strong financial outlook and "responsible" spending to weather the impacts of tariffs.
The province did do an analysis of the potential effect of U.S. tariffs, looking at a "worst-case scenario" of one year of America's 10 per cent tariff on Canadian energy and 25 per cent on all other Canadian exports.
It found that, under those tariffs, the value of Saskatchewan exports to the U.S. would drop by 30.4 per cent or $8.2 billion, the province's revenue would be reduced by as much as $1.4 billion and its real gross domestic product would shrink by up to $4.9 billion.
On Wednesday, Moe defended the decision to not include tariff contingencies.
"Why would you at the outset of a budget just loan money, pay interest on that money and have it sitting there in case you need it?" he asked.
Moe said the decision will give the province the financial freedom to act as necessary.
On Wednesday, Reiter touted previously announced reductions in the province's education property tax mill rates across all property classes and approximately $250 million in tax savings, mostly through modifying personal income tax exemptions.
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