Nova Scotia least impacted by U.S. tariffs, report says
Posted Mar 4, 2025 12:03:46 PM.
Last Updated Mar 4, 2025 04:34:13 PM.
U.S. tariffs would have the smallest impact on Nova Scotia out of all provinces in the country, according to a report from the Conference Board of Canada.
The research publication focusing on business says that the small but mighty province is the best set up to defend American tariffs because of its “broadly favourable industry mix.”
The Feb. 19 report notes that the province sent 68 per cent of its exports south of the border in 2024, the lowest among all provinces.
“But, more importantly, the province’s economy has limited dependence on international exports,” it reads. “The province’s GDP is made up by 81 per cent services, and international goods exports account for only 11 per cent of GDP, the smallest share of any province.”
This diversity bodes well for the Maritime province as President Donald Trump ordered 25 per cent tariffs on all Canadian goods, which started March 4. Despite the limited impacts, comparatively speaking, the province will feel the effects in some areas.
Anxiety in the seafood industry
The report says that the most affected industries in Nova Scotia would be tire production, the province’s largest export, and fishing, which depends on American processors.
Kris Vascotto, Executive Director of the Nova Scotia Seafood Alliance, says there is anxiety in the seafood industry but it remains unclear what the impact of U.S. tariffs will be in the long-term.
“Our American customer has been taking maybe 40 to 45 per cent of our wild fish and seafood from this province, so I don’t think we’re in necessarily as tight a corner as some other industries in Canada are because we are diversified,” Vascotto said. “I take that as a positive, but it doesn’t mean we’re out of the woods and it doesn’t mean there’s not that sense of anxiety as we look into the crystal ball that’s kind of opaque right now.”
He says it is “much too early for us to be thinking this will lead to large-scale layoffs” given uncertainty around how long the trade war will go.
