N.S. budget: Reserve fund, major tax cuts coming amid U.S. tariff threats [Video]

The Nova Scotia government has introduced a $17.6-billion budget that includes major tax cuts and a reserve fund to be used if the U.S. president makes good on his threat to impose crippling tariffs on Canadian exports.

Finance Minister John Lohr introduced a budget Tuesday forecasting a deficit of $697.5 million for the 2025-26 fiscal year — a figure that could rise if the $200-million reserve fund needs to be used.

“The threat of U.S. tariffs continues to loom over us. We don’t know what will come, but we are ready to respond,” said Lohr in his budget speech. “It is clear we are entering a period of heightened uncertainty and heightened risk.”

Economic headwinds include slowing population growth and potential American protectionism, which could trigger a drop in exports, say budget documents. In response, the Progressive Conservative government’s solutions range from lowering taxes to increasing capital spending on hospitals …