Trump’s tariffs would ‘pose a huge risk’ to Quebec economy

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OTTAWA — Quebec Premier François Legault said Canada “must do everything” to avoid the U.S. president-elect’s plan to impose 25-per-cent tariffs on all products exported to the United States, as it would represent “a huge risk” to the provincial economy.

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Calling Donald Trump’s announcement a “bombshell” that could affect “tens of thousands of jobs in Quebec and Canada,” Legault said the federal government must take “seriously” the “legitimate concerns of the president-elect regarding immigration” and border control.

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“More than ever, Justin Trudeau must have a plan to protect the border,” Legault said. The premier is a strong proponent of a tighter border control by the federal government.

“The first thing Mr. Trudeau must do is secure the border to remove this argument from Donald Trump,” he added.

On Monday, Trump announced that one of his first orders of business upon taking office Jan. 20 would be imposing a 25-per-cent tariff on all goods crossing the U.S. border from Canada and Mexico until both countries strengthen their borders.

“This tariff will remain in effect until such time as drugs, in particular Fentanyl, and all illegal Aliens, stop this invasion of our country,” Trump wrote on social media.

Legault pointed out that Alberta mainly exports oil and gas to the United States, and that Ontario’s auto sector would be greatly affected. He said Quebec’s aluminum, lumber, aerospace and agriculture industries could all be severely affected.

Quebec exports $87 billion in goods annually to the United States while its imports amount to $43 billion.

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When Trump had originally proposed a 10-per-cent tariff on imports during the presidential campaign, economists estimated it would mean a 2.5-per-cent drop in exports for the province. The impact obviously now appears to be even more significant.

“From now on, in all talks, I want a Quebec representative at the table,” said Legault.

“The important thing right now is that Canada doesn’t panic and conclude that it’s a done deal when there are still two months to go until the swearing-in,” said John Parisella, who was chief of staff to then premier Robert Bourassa during U.S.-Canada free-trade negotiations.

“That doesn’t mean we’re taking it lightly, it just means we’re preparing properly, that we’re both tacticians and strategists,” added Parisella, now a senior advisor at National Public Relations.

For 34 U.S. states, Canada is the most important trading partner, and he said diplomacy shouldn’t be exclusive to Ottawa and Washington.

The province has 11 offices in the United States to conduct government diplomacy on behalf of Quebec.

The Quebec Liberal party has asked the premier to immediately appoint a chief negotiator for the upcoming 2026 renegotiation of the Canada-U.S.-Mexico free-trade agreement.

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In the business community, uncertainty reigns. According to the Conseil du patronat du Québec, which represents 70,000 employers in the province, some companies could put the brakes on certain projects linked to the United States or on new contracts with American counterparts.

“It may also be a bit of a wait-and-see attitude, waiting until January and at the same time hoping that our governments can demonstrate once again that Canada and Quebec are partners of choice for the Americans,” said Norma Kozhaya, the council’s chief economist.

National Post
atrepanier@postmedia.com

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