Quebec prepares to fight back against U.S. tariffs: A call for diversification and local support

The announcement of new tariffs against Canada has sparked a wave of reactions. While there is frustration and anguish coming from Quebec, there is also a strong will to fight back and protect the province’s economy.

“We must stand up to protect our economy and our jobs,” said Premier Francois Legault.

Late on Saturday, Legault told reporters he plans to impose penalties on American companies doing business with the government of Quebec in response to U.S. President Donald Trump’s decision to enforce a 25 per cent tariff on Canadian products.

Prime Minister Justin Trudeau announced Canada is preparing its own retaliatory measures, including counter tariffs.

It’s a necessary move, but it comes with a price, according to Veronique Proulx, president of the Quebec Federation of Chambers of Commerce.

“We’re expecting companies to slow down production, to shut down operations and unfortunately there will be some layoffs in Quebec as well,” said Proulx.

The tariffs, she added, serve as a wake-up call. “We need to stop relying on the U.S. market,” ​argued Proulx, adding that, the province needs to diversify its export market.

“The Quebec government needs to look at its tax system, (...) we need to look at corporate tax, we need to look at credits for research and development, we need to look at the tariffs for hydro electricity,” she said.

It’s time for the province to ease the burden on local companies by creating a better business environment, said Julie White, CEO of the Quebec Manufacturers and Exporters (MEQ).

She also raised concerns over the government’s plan to increase electricity rates.

“Electricity rates may rise, but is it necessary to push them so high right now?” White added.

Especially, she said, since many Quebec industries are going to be heavily hit.

“All of the aerospace industry (...) everything aluminum — not only production, but also second and third transformation — as well as steel and wood,” said White.

Meanwhile, for Jean-François Samray with the Quebec Forest Industry Council, the priority is focusing efforts on finding new markets — including right here at home.

“We have a housing crisis so there’s a need for new houses and new buildings (...),” explained Ramray.

“For us, that means there’s an opportunity right here to get a new business from the domestic market.”

This could create jobs and help stimulate the local economy, he added.

While there may be some opportunities to help Quebec industries in the long run, Proulx said help is needed right now.

“We will need financial programs to help companies that won’t be able to pay their customers and won’t be able to pay their employees,” she said. “We’re also hoping to see — and we’re asking for programs for employees as well.”

Proulx pointed out that training initiatives could help workers transition into new roles if their current positions are at risk.

These could be necessary as Quebec is estimating that the tariffs could cost more than 100,000 jobs.