Premier François Legault announced Quebec’s retaliatory measures and local response on Tuesday to President Donald Trump’s sweeping tariffs amid the start of a trade war between Canada and the U.S.
Hours after Trump imposed 25 per cent across-the-board tariffs on Canadian goods and a 10 per cent levy on energy exports, the premier said Quebec companies vulnerable to the tariffs can apply for loans to help them navigate the turbulent trade relationship in the upcoming months.
Companies can receive loans up to $50 million, with a maximum term of seven years, and a deferral of up to 24 months to begin repaying them.
Legault said the province will launch a fund that will provide financing to hard-hit businesses, and is encouraging companies looking to expand to apply for funding with Investissement Québec, the province’s investment arm.
“This is an unjustified attack that will hurt our economy, but it will also hurt Americans,” he said. “We need to keep a cool head, but we also want to be very clear: We are no going to let ourselves be intimidated by Donald Trump.” Legault has said up to 160,000 jobs in Quebec could be lost if the 25 per cent tariffs are maintained. The cities most at risk are Saguenay, Trois-Rivières, and Drummondville.
The province will also pull U.S. alcohol from its SAQ stores run by the provincial liquor monopoly. “I urge Quebecers, now more than ever, to buy local,” the premier said.
Quebec will also penalize American companies who bid on public contracts. The province will impose penalties of up to 25 per cent on bids by U.S. companies if those companies are not already established in Quebec.Legault said the province has tools it can leverage to help it weather the storm, like its power utility, Hydro-Québec.
“Even if it will be tough, I think at the end, in one year, two years, our economy will be stronger, less dependent on the United States,” he said. “So our economy will be a new economy, but a more solid economy.”
This came shortly after Prime Minister Justin Trudeau’s sharp address to “Donald” at his Ottawa press conference, where he called U.S. President Trump by his first name and said the move to go ahead with tariffs was “a very dumb thing to do,” before warning Canadians of a tough road ahead.Trump responded on his Truth Social platform and wrote, “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!”
On Monday night, Trudeau said Canada “will not let this unjustified decision go unanswered,” hours before the U.S. deadline.
In response, Canada hit back with an initial 25 per cent tariff on $30 billion worth of U.S. goods, with additional tariffs on another $125 billion in American goods to come three weeks later.
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau added.“ While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”
While Trump has imposed a 25 per cent tariff on most goods, Quebec says the province’s valuable aluminum industry will only be subject to the 10 per cent levy that’s being imposed on energy and critical minerals.
Regardless, the effects are already being felt at Aluminum producer Alubar, which announced Monday it was halting its operations at its Bécancour, Que., facility following Trump’s decision to proceed.
Quebec is the largest aluminum importer to the United States. Government data shows the province accounts for 60 per cent of aluminum used in the U.S., and 90 per cent of the aluminum produced in Canada.
Quebec premier says up to 160K jobs at risk as Trump’s tariffs set in
