Ratings agencies said some provinces were more at risk from the potential March 4 tariffs due to their disproportionate exposure to U.S. exports or weaker financial positions.
Tariffs on Canadian imports pose a greater risk to specific provinces than to Canada's overall credit rating, according to analysts. Ontario and Quebec, major manufacturing hubs, are particularly vulnerable due to their reliance on U.S. exports. Alberta and Saskatchewan, dependent on energy and potash exports, are also at risk. British Columbia and Nova Scotia, though less export-dependent, face challenges due to higher deficits and debts. The impact of tariffs varies based on their extent, duration, and targeted sectors. Ratings agencies currently maintain a stable outlook but are closely monitoring the situation. Provinces are preparing for potential financial impacts, including those from federal immigration cuts and trade disputes.
