Quebec Premier Christine Fréchette met with business leaders from throughout the province for a roundtable discussion in Montreal on Thursday.
The premier and economic leaders discussed the looming 50 per cent tariffs that are set to be imposed on hundreds of Canadian goods by U.S. president Donald Trump on Aug. 19 – as talks for a new trade deal continue between Canada and the U.S.
“We’re talking about up to nine per cent of our exports potentially being affected by these tariffs,” Fréchette said. “That equates to a potential impact of $7 billion, so it’s colossal.
“I know that many businesses could be in survival mode if these tariffs are implemented. Negotiations with the federal government are ongoing.”
The political and business leader explored how tariffs could impact Quebec businesses specifically, as well as how the provincial government could support them.
“We suggested different measures for the government to put in place in the context where there would be tariffs as of August 19. We asked for more, to put in place measures to help companies, including tax measures,” said Véronique Proulx, president and CEO of the Fédération des Chambres de Commerce du Québec (FCCQ).
The FCCQ, the organization representing Quebec’s Chambers of Commerce, says several businesses in the province are already being impacted by the threat of new American tariffs.
“Since the last tariffs have been announced, some Quebec companies had U.S. customers cancel orders because they don’t want to be stuck to pay the tariffs if the tariffs do come in,” said Proulx. “So already we’re losing contracts, we’re losing market share and a lot of companies are also considering major layoffs in the case where these tariffs would come in place.”
After the closed-door meeting, Premier Fréchette confirmed the CAQ government is prepared to provide support to businesses if the new 50 per cent tariffs are imposed.
“We will be there should businesses need our support because there would be an important application of new tariffs,” she said. “We’ve been there to help them since the beginning of this tariff war and we will be there again.
“But I think that the federal government must be there also because they are the one who are negotiating. They are the one who can see the type of impact that will be triggered into the economy with the current negotiations.”
Jean Simard, the president and CEO of Aluminium Association of Canada, says the impact of tariffs could be “disastrous.”
“The role of government in a situation like this is to care for the ones that are affected,” he said. “They know who they can be, who they might be. They know how to intervene. Now it’s to make this take shape afterwards.”
“To the provincial government is that they must continue to push the federal government to come to an agreement before August 19,” said Proulx. “It’s not negotiable. We need an agreement for Quebec companies. These tariffs will be unbearable for our companies, our regions and for the Quebec economy.”
