One year after introducing its Protect Ontario budget, the provincial government reports the anticipated economic impact of US President Donald Trump's tariffs has not materialized.
Finance Minister Peter Bethlenfalvy confirmed Ontario’s economy grew 1.2 percent in 2025, surpassing the projected 0.8 percent. Significant safety nets remained largely unused; businesses utilized only $2 billion of available $9 billion in tax deferrals. Additionally, industries tapped just $1 billion of the $5 billion Protect Ontario Account.
Unused funds are now being redirected toward emerging investment sectors. While critics argue the protective messaging was exaggerated, officials cite ongoing risks including CUSMA renegotiations and global energy volatility. The 2026 financial plan projects a deficit of $13.8 billion this year, delaying balanced budget targets until 2028.