The Ontario government is forecasting a deficit almost ten times larger than it predicted last fall for the coming fiscal year − at $14.6-billion − as the province wrestles with the impact of U.S. tariffs.

In its budget introduced on Thursday, the province dramatically increased the amount of red ink it expects in 2025-26, blowing away its previous estimate of a $1.5-billion deficit from last November that was based on economic projections predating U.S. President Donald Trump‘s trade war.

It’s the latest fiscal plan issued by a Canadian province to show the damage the tariffs are doing to government balance sheets, with Alberta, B.C. and Quebec also among those posting ballooning deficits in recent months.

Now, with U.S. tariffs imposed on Ontario’s large auto, steel and aluminum industries, the province’s economic picture is darkening. The government still expects some annual growth, based on a conservative reading of private sector-forecasts, but predicts real gross domestic product will expand by just 0.8 per cent, half its projection from last fall.