U.S. trade policy casts a shadow over Ontario budget: CHCH breaks it down

The Ontario government tabled its latest budget with billions of dollars set for investments aimed to protect Ontario Workers, which come in the face of U.S. President Donald Trump’s tariffs.

There are many items in the budget to pay attention to, including the items that were announced earlier this week like a permanent freeze on the gas tax, and eliminating tolls on Hwy. 407’s eastern portion.

But a few things are new, including additional changes to the price of alcohol and a clearer picture of how much the province is looking to spend to help workers through the U.S. tariffs.

“Madame Speaker, if not now, when?,” said Peter Bethlenfalvy, Ontario’s Finance Minister. “Now is not the time to ease up! Now is the time to be bold! Now is the time to do the hard things! The economy of tomorrow is at the door! And I am here to tell you that our government is ready to answer the call!”

Bethlenfalvy delivered the Ford government’s latest budget Thursday, titled “A Plan to Protect Ontario” saying every spending decision was made with the U.S. tariffs in mind.

The government is rolling out $11 billion in supports for businesses and workers impacted by the tariffs, including $5 billion for the so-called “Protect Ontario Account.”

The government also says it will provide financial relief to businesses that have already exhausted available funding, but shared few details on how it will work.

“That will help us support impacted businesses and our economy to weather the storm, but we are going to need the federal government to step up and do their part as well,” said Bethlenfalvy.

READ MORE: Ontario budget: U.S. tariffs, uncertainty, mean a weaker Ontario economic outlook

The opposition said they were looking for more supports for workers that have already been laid off.

“And for families wondering how they make ends meet this summer, for overworked healthcare or education workers, or for auto workers who are worried about their livelihood,” said Marit Stiles, Ontario’s NDP leader. “This budget delivers little hope and no reassurance.”

“This budget ignores the fact that people are going to be hurt by the tariff war,” said Ontario’s Green Party leader Mike Schreiner. “That we need a budget that actually invests in people.”

All of the budget’s proposed spending in reaction to tariffs will take a toll on the deficit.

The government is projecting a $6 billion deficit in the 2024-2025 fiscal year, and that’s expected to jump to $14.6 billion next year.

The government says they can balance the budget by the 2027-2028 budget announcement.

Niagara will be getting some of that cash, with two new programs to promote the province’s wine industry.

The “Enhancing Ontario Grape and Wine Production” program will provide up to $35 million annually to eligible wineries over five years.

The government says the money is expected to double the percentage of Ontario grapes in blended wine, leading to the purchase of thousands of additional tonnes of local grapes.

The government will also provide $420 million over the next five years to support Vintners Quality Alliance (VQA) wine producers.

“It’s another measure to support Ontario-made,” said Bethlenfalvy.

Niagara Police Services will also be getting a new helicopter to help patrol the border.

The budget also lays out a 10 year plan that includes $30 billion to support the construction of new highways, hospitals and public transit.

But spending on healthcare and education operations is minimal, something the opposition took issue with.

“Why the emphasis on putting money back into people’s pockets by making beer and alcohol cheaper for them?,” said Ontario Liberal leader Bonnie Crombie. “That money needs to go to healthcare and education.”

Crombie referred to the government’s plan to slash the price of beer, cider and pre-mixed cocktails at the LCBO, by reducing how much the store can mark-up the price for the products.

Even as the Crown Corporation is reporting a $300 million loss since convenience stores have been able to sell booze.

The budget also outlines a $50 million investment over three years to expand interprovincial trade.

The government is already working on this endeavor, with Premier Doug Ford and Manitoba’s Premier Wab Kinew signing a Memorandum of Understanding Wednesday.

READ MORE: Ontario and Manitoba ink deal to boost interprovincial trade