Tariffs Compound Newfoundland and Labrador's Economic Woes

The recent trade war between Canada and the US has put Newfoundland and Labrador's economy at risk. President Trump's tariffs on hundreds of Canadian export goods, including those from the province, are set to compound an existing problem. The province's investment climate was already considered tepid before the tariffs.

Between 2018 and 2025, Newfoundland and Labrador posted the second-worst growth rate in 'non-residential capital stock,' a measure of business investment in the economy. This is a stark contrast to previous periods when the province led or ranked high in investment.

The oil and gas industry, which drives most of the province's investment, was under regulatory assault from the Trudeau government during this period. The sector experienced significant declines in recent years, with three other major industries - mining, transportation, and utilities - also seeing decreases in investment.

Policymakers can help improve the investment climate by enacting better policies, particularly when it comes to regulation and permit times. Investors consistently point to these issues as barriers to investment.