Here’s what Quebec is doing in response to Trump’s tariffs

The Quebec government is promising to support businesses in the province and to retaliate against U.S. tariffs.

Quebec Premier François Legault promised to support Quebecers and retaliate against the United States after President Donald Trump’s tariffs went into effect Tuesday.

He announced that American alcohols will be off Quebec’s shelves, including at the SAQ, grocery stores and bars.

The government is also creating a loans and subsidy program of up to $50 million for vulnerable Quebec businesses to help them weather the economic storm over the next year as they adjust their business models and supply chains.

Legault stressed that it’s “imperative” that Quebec increases trade with other Canadian provinces while continuing negotiations with the U.S., which is imposing 25 per cent tariffs on all Canadian products.

Energy and critical minerals will be hit with 10 per cent tariffs, which Legault said is proof Americans need certain Canadian products. He pointed out that 60 per cent of aluminum used by the U.S. is from Quebec.

“The attack is unjustified so we have to stay level-headed,” he said at a news conference, adding it will hurt Canadians and Americans alike.

Legault said he spoke with Ontario Premier Doug Ford about getting rid of interprovincial trade barriers in order to increase trade with the rest of Canada.

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‘We could lose 160,000 jobs’

He said the goal is to mitigate the trade war’s impact on Quebecers while working toward a mutually beneficial agreement with our neighbour.

“On the long-term we hope to have a deal with Trump and have access to the American market,” which is much bigger than the Canadian market, said Legault. “We could lose 160,000 jobs in the next year if this goes on.”

The government also announced penalties up to 25 per cent, effective immediately, on bids from U.S. companies that participate in public tenders without having establishments in Quebec or with its trading partners.

Quebec Treasury Board President Sonia LeBel said that shutting American businesses out completely would only hurt Quebecers.

“We want to retaliate and send a strong message, but Quebecers are our priority,” she said.

For now, Legault said there are no plans to impose further counter-tariffs on aluminum or to cut power, though “everything is on the table.”

Despite uncertainty, Legault remained optimistic that the province will be able to handle the economic turmoil thanks to the Caisse de Dépôt, Investissement Québec and Hydro-Québec.

Economy Minister Christine Fréchette echoed Legault, saying Quebec has a low unemployment rate and a relatively diverse economy while acknowledging the challenges and unpredictability ahead.

“After meeting with businesses, I felt their determination, resilience and solidarity... and I think that is key,” she said.

“We will get through this crisis and come out of it stronger” with a solid foundation and access to markets around the world, she added.

Annexation threat

Legault admitted that while in Washington, one of Trump’s advisers made mention of his desire to cripple Canada’s economy in order to annex the country.

“Unfortunately we cannot exclude this goal,” he told journalists, adding that Trump’s true intentions are “vague.” Legault said he believes Trump wants more products to be produced in the U.S. and to negotiate access to Canadian resources from a strong position.

“If he does want access to our critical minerals by trying to make Canada the 51st State, I can tell you that won’t happen and it certainly won’t happen with Quebec.”

After the news conference, Legault met with Prime Minister Justin Trudeau and the other provincial and territorial leaders in the country.

Legault said he will be working with the federal government to strengthen social safety nets in the coming months.

Vulnerable industries

A study by the Canadian Chamber of Commerce shows the Quebec cities most at risk from tariffs are Saguenay, Trois-Rivières, and Drummondville.

Several vulnerable export-dependent industries are urging all governments to rapidly develop plans to support industries and workers.

Dominic Lemieux, director of the United Steelworkers union, said the tariffs threaten several sectors like aluminum, lumber, steel, manufacturing and auto parts.

He said the government’s plan should include modernizing factories, increasing domestic transformation of natural resources, finding new clients and improving the social safety net.

“There is no room for magical thinking today,” he said. “The storm has begun and we need our governments to protect workers and good jobs in our economy.”

The head of Quebec’s mining association urged the government to cut red tape, saying “delays for the development of mining projects in Quebec must cease” for the industry to remain competitive.

Quebec’s natural resources minister, Maïté Blanchette Vézina, announced the creation of a group of government and industry players to diversify markets for forestry exports.

Meanwhile, the Canadian Federation of Independent Business said it needs Quebec to do more for small businesses who won’t qualify for the announced loans. Fréchette said there are other programs in place, and more information will come.

With files from The Canadian Press