Manitoba premier vows to 'build, build, build' as trade wars loom large over next budget

Ian Froese · CBC News

· Posted: Mar 20, 2025 6:00 AM EDT | Last Updated: 10 minutes ago

Manitoba Premier Wab Kinew says his government's 2nd fund volition absorption connected gathering up the state arsenic it contends with tariff wars connected 2 fronts.

"If we're heading into a play wherever radical are disquieted astir the economy, what's the tried and existent mode of supporting jobs? It's putting radical to work, gathering highways, gathering roads, gathering hospitals, gathering schools, gathering idiosyncratic attraction homes," Kinew said Tuesday, successful beforehand of the Thursday unveiling of his government's 2025-26 spending plan.

"There's going to be a batch of projects to conscionable build, build, build, portion we effort and stabilize these economical uncertainties we're facing."

Kinew said the fund volition relationship for the U.S. tariffs Manitoba is now facing and additional levies that may follow.

The fund program volition see 2 fiscal scenarios: 1 wherever tariffs are removed, and another where they persist and the state steps up with caller fiscal supports for the system and businesses, Kinew said.

"We've got to beryllium determination with flexibility, but astir importantly transparency, truthful radical spot the economical program is 1 that's existent and it's going to assistance you."

Trade wars with U.S., China

The NDP authorities antecedently said businesses affected by the tariffs can take to defer paying some the wellness and post-secondary acquisition taxation levy — commonly called the payroll tax — and the provincial income taxation for astatine slightest the adjacent 3 months, starting with the February taxation period.

The enactment is portion of Manitoba's effect to the evolving tariff menace from the U.S. Last week, President Donald Trump deed Canada with 25 per cent tariffs connected alloy and aluminum. Trump plans to instrumentality further levies connected April 2.

In response, Canada retaliated with 25 per cent tariffs connected $29.8 cardinal worthy of U.S. goods.

Meanwhile, China slapped 100 per cent tariffs connected Canadian cultivation products — including canola — successful retaliation for 100 per cent tariffs connected Chinese-made electrical vehicles and a 25 per cent levy connected Chinese aluminum and alloy products that Canada imposed successful October to lucifer akin U.S. levies.

The economical fallout from these commercialized wars volition marque Manitoba's way to equilibrium the fund by 2027 narrower. Balancing the fund successful its archetypal word was 1 of the NDP's promises during the 2023 provincial predetermination campaign.

Even earlier the tariffs, the province said successful December its projected deficit for the existent fiscal twelvemonth had ballooned by fractional a cardinal dollars, to a full of $1.3 billion, which it said was mostly the effect of overspending connected wellness care.

The authorities has pledged to bounds spending increases successful aboriginal years to equilibrium its budget, but hasn't articulated however it would bash so, after overspending fund estimates successful its archetypal year, on with promising to prosecute much health-care workers and constabulary officers and find homes for radical surviving successful encampments. 

The state indispensable besides find wealth to boost Manitoba Hydro's generating capacity, so the provincial Crown corporation can stave disconnected a powerfulness shortage expected arsenic soon arsenic 5 winters from now. The utility faces billions successful deferred attraction costs and indispensable marque further billions worthy of investments successful caller powerfulness generation.

Kinew's pledge of much infrastructure projects implicit the adjacent twelvemonth whitethorn besides strain the province's finances.

The province divulged immoderate of the caller infrastructure projects in the pb up to this week's Transcona byelection: caller kindergarten to Grade 8 schools successful Devonshire Drive West and Prairie Pointe in Winnipeg, on with a K-8 school in West St. Paul. The Park Manor idiosyncratic attraction location successful Winnipeg's Transcona neighbourhood is besides acceptable for a 90-bed expansion.

The state whitethorn marque headway this twelvemonth connected 1 of Kinew's apical predetermination promises: reopening 3 Winnipeg exigency departments.

When past year's fund was released, Kinew said helium expects "shovels successful the ground" for a caller exigency country astatine Victoria Hospital wrong 2 years. Construction connected that enlargement has yet to start.

New information rebate for businesses

Small- and medium-sized businesses tin besides expect enactment to support their workplaces from vandalism and break-ins.

The fund volition see $10 cardinal for a caller information rebate programme specifically for businesses, an authoritative successful Kinew's bureau said.

The rebate volition connection these owners up to $2,500 to allow them to acquisition information equipment, the authoritative said.

A erstwhile location information rebate created by the authorities that offered a maximum $300 rebate to businesses and homeowners was oversubscribed and rapidly ran retired of funds.

On the gross side, Manitoba's books are helped this fiscal twelvemonth by the reinstatement of the provincial state tax, albeit down to 12.5 cents a litre from 14 cents. The state surrendered astir $340 cardinal past twelvemonth due to the fact that of a interruption connected that tax.