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.”
0:59Trump addresses tariffs on Canada and Mexico during speech before U.S. Congress
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.
Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.Sign up for daily National newsletterSign Up
By providing your email address, you have read and agree to Global News’ Terms and Conditions and Privacy Policy.
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.
2:02Why it’s hard to make sense of Trump’s threats against Canada
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.
1:59Trump tariffs: U.S. president wants to see ‘total collapse’ of Canadian economy, Trudeau says
“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.
Several export-dependent industries that are vulnerable to tariffs responded on Tuesday, urging the provincial and federal governments to rapidly develop plans to support industries and workers.More on CanadaMore videos
The Quebec director of the United Steelworkers union said the tariffs threaten several sectors, including aluminum, lumber, steel, manufacturing and auto parts. Dominic Lemieux said the government’s plan should include modernizing factories, increasing domestic transformation of natural resources, finding new clients and improving the social safety net
“There is no room for magical thinking today,” he said. “The storm has begun and we need our governments to protect workers and good jobs in our economy.”
The head of Quebec’s mining association urged the government to cut red tape, writing that “it is clear that the increase in administrative formalities and the increase in delays for the development of mining projects in Quebec must cease” for the industry to remain competitive.
Quebec’s natural resources minister, Maïté Blanchette Vézina, announced the creation of a group of government and industry players whose goal is to diversify markets for Quebec forestry exports. “It’s important to unite our forces,” she wrote in a news release.