OTTAWA — Canada’s provincial governments have enough fiscal firepower to respond to looming U.S. tariffs without supersizing their debt burdens, a new report says.

The analysis released Tuesday from Desjardins Economics predicted upcoming provincial budgets will be dominated by plans to prepare for an unknown 2025 as promised tariffs from U.S. President Donald Trump put a cloud over fiscal forecasts.

Desjardins anticipates the provinces could deploy those funds without the net debt-to-GDP ratio across all provinces rising above 35%.{ai:summary}<p>A report from Desjardins Economics indicates that Canadian provinces can manage potential U.S. tariffs without significantly increasing their debt. The analysis suggests that upcoming provincial budgets will focus on preparing for the uncertain fiscal landscape expected in 2025. </p><p>#economy</p>

Provinces have about $100B available for tariff relief, report estimates

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