Alberta is set to introduce its budget Thursday, with rumours swirling that Premier Danielle Smith's government will deliver on her promised personal tax cut amid the looming threat of devastating U.S. tariffs. (Photo: Canadian Press)

By The Canadian Press

February 27 Budget

U.S. tariffs, possible tax cuts expected to dominate Alberta budget

Feb 27, 2025 | 9:38 AM

The looming threat of U.S. tariffs along with a potential tax cut are expected to dominate Alberta’s budget today.

Finance Minister Nate Horner says addressing affordability is a prime concern, but the uncertainty surrounding tariffs makes the budget more challenging.

By legislation, the province can’t run a budget deficit unless revenue drops by $1 billion or more something Horner warns could happen in the case of tariffs.

He says the United Conservative Party government is planning for a set of scenarios assuming tariffs in some way are coming soon from U.S. President Donald Trump.

Economist Charles St-Arnaud says Alberta will need to be prudent in case it needs to stimulate the economy.

Opposition NDP finance critic Court Ellingson says his party wants to see the government address affordability and support public services but is expecting spending cuts.

This report by The Canadian Press was first published Feb. 27, 2025.