Under pressure from the U.S. trade war and a slowing economy, Canada’s provinces are all expected to run fiscal deficits this year — but a Conference Board of Canada report predicts those deficits will narrow in the coming years.

The report released Tuesday paints a picture of provinces struggling to balance their books.

Not long after emerging from a pandemic that caused deficits to balloon, Canada’s provinces are now staring down the barrel of a trade war.

Most provinces have put up contingency funds in this year’s budgets to support workers and critical industries through the tariff dispute.

Many are also aligning with the federal government to push forward major infrastructure projects in the coming years, putting pressure on capital spending.

Just as provinces are drawing down

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