Quebec is implementing two new programs for businesses in the province to help them following the failure of trade negotiations between Canada and the United States, as well as the imposition of 50 per cent tariffs on several products by President Donald Trump.
Premier Christine Fréchette made the announcement Saturday at noon, shortly after a meeting with her ministers.
“Trump is directly attacking our economic security,” Fréchette stated from the outset.
Businesses will be able to apply to both programs starting next week. The first is for small and medium-sized businesses with revenues between one and two million dollars, and the second for businesses with revenues over two million.
“We will complement the aid measures that the federal government is expected to announce,” said Economy Minister Bernard Drainville, who was present alongside Fréchette at the press conference on Saturday at noon.
Fréchette is scheduled to meet with Canadian Prime Minister Mark Carney on Saturday afternoon. She intends to emphasize to Carney the importance of protecting businesses and workers, and also to consult with Quebec should Ottawa wish to implement retaliatory measures.
Opposition parties react
Earlier on Saturday, the leaders of the various political parties reacted to the entry into force of the customs duties and the failure of trade negotiations.
In a statement published on social media, the leader of the Quebec Liberal Party, Charles Milliard, stated that Quebecers need a government and a premier with credibility who understands current economic realities.
“This is not the time to re-elect a government at the end of its term, which has been unable to provide the leadership to build a more resilient economy and which is unable to obtain the necessary information from our Canadian partners in the current negotiations,” he commented. “We are at economic war with the world’s leading power.”
The leader of the Parti Québécois, Paul St-Pierre Plamondon, also adopted an electioneering tone by stating that “a Parti Québécois government will do everything in its power to protect and support Quebec businesses.”
For him, the turn of events highlighted what he considers to be the position of weakness and spectator in which the CAQ and Christine Fréchette found themselves.
“By her own admission, Christine Fréchette had no information about what was happening at the negotiating table. How can we defend Quebec’s interests when we have no idea what is going on?” he argued.
Québec solidaire co-spokesperson Ruba Ghazal applauded Canada’s withdrawal from negotiations. “It’s a good thing that Canada is standing up to Donald Trump for once, who is totally unpredictable and who says and does anything right now, and that hurts our businesses, it hurts our workers,” she said during a press conference on another topic.
She was also pleased to see Fréchette wanting to react quickly to the crisis caused by American intransigence. “The fact that she wants to act quickly to see what emergency aid she can provide is a good thing; I applaud Christine Fréchette for doing so.”
Reactions from business people and unions
While welcoming the “firmness” of the Canadian government, the Quebec Employers Council says it welcomes “with concern” the suspension of trade negotiations between Canada and the United States.
“This is a major setback for Quebec companies that were hoping to finally regain some predictability in their dealings with our main trading partner,” acknowledged Michelle Lambías Meunier, president and CEO of the organization.
According to the Quebec Federation of Chambers of Commerce (FCCQ), this is the worst-case scenario for Quebec businesses. To help them, the organization recommends various measures, including significantly increasing non-repayable financial support for liquidity and working capital, and implementing a temporary income tax holiday or relief for affected businesses.
“Faced with the new tariffs, the responses from the targeted companies are also clear: they need non-repayable financial assistance, not additional debt, and do not want counter-tariffs,” stressed Véronique Proulx, President and CEO of the FCCQ.
On the union side, the CSN says it will be vigilant regarding the aid programs that governments will propose to help workers affected by the imposition of new customs duties.
The FTQ, for its part, has asked the federal and Quebec governments for urgent support for workers and businesses that will be affected by these new tariff increases.
– With information from François Vézina
