Alberta projects C$5.2-billion budget deficit if Trump tariffs proceed

The downtown city skyline of EdmontonBy Amanda Stephenson

CALGARY (Reuters) - Canada's oil-producing province of Alberta on Thursday forecast a budget deficit of C$5.2 billion ($3.5 billion) for the 2025/26 fiscal year if U.S. tariffs are implemented and decrease government revenues and slow economic growth.

The outlook reflects a dramatic reversal of Alberta's fiscal health, following what is expected to be a C$5.8-billion budget surplus in the current fiscal year, and illustrates the wide-spread uncertainty Canadian policy-makers are facing as they grapple with the tariffs situation.

"How do you plan for a budget when there are so many unknowns, when you have so much unpredictability with…