Quebec Premier François Legault says the Quebec economy could be entering a tough transition period if U.S. President Donald Trump follows through with his threat of 25 per cent tariffs.
“There would be a tough transition period. But I’m convinced that a Quebec economy can be better in five, ten years from now than it is today,” he told reporters on Wednesday.
Legault says his first priority is still to convince Trump to back down. “I think we’ll do it Feb. 1,” he said.
But if he and other provincial leaders cannot, Legault says they’re ready with a response.
“We study all kinds of scenarios, all kinds of retaliation measures. But it’s too soon to say, OK, that’s what I’ll do,” he said.
More than half of Quebec’s small and medium-sized businesses trade with the United States.
The Canadian Federation of Independent Businesses (CFIB) says that in the face of a possible trade war, Quebec needs to make doing business easier.
“We have to reduce red tape. We have to eliminate trade barriers and we have to reduce tax burdens,” said François Vincent, CFIB’s Quebec vice president.
Quebec’s maple syrup producers are preparing for whatever comes. Producer Jonathan Blais says despite efforts to diversify, 62 per cent of Quebec’s maple syrup exports end up on American grocery store shelves.
Quebec produces 72 per cent of the world’s maple syrup, and Blais says while producers might suffer, it’s American consumers who will end up paying more.
For Legault, the threat alone signals the need to become more economically independent.
“There will be a transition period. That won’t be easy because some jobs may be lost in certain sectors, but replaced by other jobs in other sectors that will be better paid,” the premier said.
Legault says preparations are in place, but he plans to wait for Trump to act first.
