Quebec cities can now slap 25 per cent tariffs on U.S. companies bidding on municipal contracts

Andrée Laforest, Quebec Minister of Municipal Affairs, in Scott, Beauce, on February 8, 2024. (Jacques Boissinot/The Canadian Press)

Starting this Thursday, cities will also impose penalties of up to 25 per cent on American companies bidding on municipal contracts.

The François Legault government has just adopted a regulation to further penalize American companies that do not have a presence in Quebec.

This is in addition to the measures already taken by Quebec in response to the 25 per cent tariffs imposed by U.S. President Donald Trump. Energy products are subject to a 10 per cent tariff.

Last Tuesday, Premier Legault announced penalties of up to 25 per cent for Americans bidding on public tenders in the health and education networks.

The sectors targeted are computer hardware and software, medical supplies and equipment, pharmaceutical products and scientific instruments.

Legault also announced the withdrawal of all American products from SAQ shelves. The government has also tightened the rules governing public acquisitions on online shopping platforms such as Amazon.

The regulation adopted on Wednesday also stipulates that, for calls for tenders, municipalities must only invite companies with a presence in Quebec or with commercial partners.

Similarly, they may only award a contract by mutual agreement to a company with an establishment in Quebec or with a business partner.

According to Andrée Laforest, Minister of Municipal Affairs, cities will have levers similar to those of public bodies to protect local businesses.

“In the context of the imposition of U.S. tariffs, elected municipal officials have expressed their solidarity and their willingness to put their shoulder to the wheel in the fightback effort,” she said in a press release.

“Our objective was therefore to quickly put in place the necessary measures so that municipalities could impose the same sanctions as the government. Now more than ever is the time for us collectively to focus on acquiring Quebec products and using Quebec services to support Quebec’s economy, and particularly that of our regions,” she added.

“Over the past few years, our government has introduced several legislative measures to encourage people to buy from Quebec and Canada. Today, we’re going one step further, and I’m very proud of that.”

This report by The Canadian Press was first published in French on March 6, 2025.