The Manitoba government is taking a bold stance in the escalating trade war with the United States, unveiling a $25.9 billion provincial budget on Thursday that includes punitive measures targeting U.S. companies and electric vehicle (EV) giant Tesla. The budget also introduces new funding to help local businesses reduce their reliance on American exports.
“Trump-Proofing” the Economy
Finance Minister Adrien Sala described the measures as part of a broader strategy to “Trump-proof” Manitoba’s economy, citing U.S. President Donald Trump’s recent 25% tariffs on Canadian steel and aluminum. Trump has vowed to impose additional levies on April 2, prompting Manitoba to craft a contingency plan to shield its economy.
“We are committed to being elbows up,” Sala said during the budget briefing, underscoring the government’s determination to push back against protectionist U.S. policies.
Tesla and Chinese EVs Excluded from Rebates
In a sharp policy shift, Manitoba will exclude Tesla and all Chinese-manufactured EVs from its $14.8 million rebate program, a move aimed at reducing financial support for companies linked to U.S. or Chinese production.
Previously, Manitobans who purchased Teslas or other eligible EVs could claim provincial rebates, but the NDP government is now limiting the incentive to Canadian-made vehicles or those manufactured in allied nations.
Texas-Based Park Pass Contract Terminated
As part of its retaliatory measures, Manitoba will also end its contract with Aspira, a Texas-based firm that has handled provincial park pass sales since 2020. The contract, worth over $5 million, will not be renewed when it expires in April.
To ease the transition, the government will make entry to all provincial parks free starting April 1, a move expected to cost the province nearly $3 million in lost revenue. The government will search for a Canadian vendor to manage the system moving forward.
Deficit and Tariff Contingency Plan
The budget also outlines a worst-case scenario plan if U.S. tariffs persist. Manitoba forecasts a deficit of up to $1.9 billion, with an estimated $600 million revenue shortfall if Trump’s additional levies take effect.
To offset the impact, the province will allocate hundreds of millions of dollars to support agriculture, assist affected businesses, and stimulate the local economy. The government is also pledging an additional $500,000 to its export support program, helping Manitoba companies expand into non-U.S. markets.
Investor and Business Impact
Manitoba’s aggressive measures signal growing tensions between Canada and the U.S., raising concerns for businesses reliant on cross-border trade. The exclusion of Tesla from the rebate program may impact EV adoption rates, while the termination of the Texas park pass contract reflects a broader push for “buy Canadian” policies.
As trade relations remain strained, Manitoba’s efforts to diversify its economy and reduce reliance on U.S. exports will be closely watched by both investors and policymakers across the country.
