MNI: Mild US And China Tariff Damage- NS Finance Minister

U.S. and Chinese tariffs have caused limited pain to Nova Scotia, a major exporter of lobsters, Christmas trees, tires and lumber, the province's Finance Minister John Lohr told MNI, in comments mirroring Canada’s success avoiding the recession he and many investors predicted earlier this year.

"Nova Scotia’s economy has weathered US tariffs relatively well, although some sectors are facing challenges," Lohr said in emailed comments after a budget update. "The 10% tariff on Nova Scotia lumber raises costs and reduces competitiveness, and Chinese tariffs on seafood have hit our seafood industry."

While tires from the province's Michelin plants faced U.S. tariffs, Christmas tree exports were exempted, also in line with a year were Donald Trump's threats of economic domination of Canada were watered down. (See: MNI INTERVIEW: Trump Risks North American Recession- NS FinMin)

Lobster shipments were hurt as China imposed seafood tariffs in retaliation after Canada matched U.S. duties on its electric cars. 

Lohr created a CAD200 million contingency fund earlier this year to deal with damage from trade disputes, and the budget update showed only a CAD25 million withdrawal to instead cover extra costs from wildfires. The update also showed a CAD65 million increase in the annual deficit estimate to CAD1.29 billion, attributed to tax cuts and increased spending. 

Nova Scotia is taking up Prime Minister Mark Carney's messages that other export markets must be found because there's no return to intense trade with the U.S., and that governments must act to boost productivity. 

"We’re working hard to promote Nova Scotia, our companies and our people on the international stage," Lohr said. "We are also taking a hard look at our own spending."

Early signs of damage to the national economy led the Bank of Canada to lower borrowing costs four times this year, ending 2025 by signaling they are now likely done.