U.S. tariffs loom large over Ontario’s annual budget as first look shows $16.9B deficit

Smiles as they walk in, but the finance minister is set to deliver some tough economic news. The deficit projected to be $16.9 billion this year. $3.1 billion more than anticipated in the spring budget. And next year, more than double the size of what was projected. The minister mainly blaming U.S. tariffs. Perhaps the most consequential time in our country's recent history. We are living in a post-free trade, protectionist world. And he says the war in Iran is also a factor, bringing higher gas prices. To a world awash. In a sea of instability. This mini-budget also includes a one-time contingency fund top-up of $3.8 billion. The finance minister saying the U.S. president is promising higher tariffs on steel and auto as of January 1st of 50 percent. Plus, there's more added to the reserve fund. We're building in a lot of prudence just to fortify in the environment that we have to fortify our financial position in front of that uncertainty. Announced a day earlier and part of this update, the province is matching the federal government's mega tax deductions for businesses, spending $8 billion in tax relief over five years, an attempt to bring jobs and business. Opposition parties panned the government's vision. This is quite honestly the most mediocre fall economic statement that I have ever seen. The NDP pointing to rising costs and more people out of work with no new measures to help them. This update also once again delays the path to a balanced budget for the fourth time in two years, now expected in 2029-2030. It's gotten to the point where I'm waiting for the finance minister to say, no really, I'm serious this time, I'm really going to balance the books. Also in this fiscal update, new housing start projections, lower than predicted in the budget through 2029, though picking up a bit in two years' time. The finance minister was also asked about the plan for a tunnel under Highway 401. Given these challenges, an expensive project, the minister would only say they have to look at all the options. Loretta Radicoff, CBC News, Toronto.