MONTREAL — Promising Quebecers to protect them against the "unjustified attack" of U.S. tariffs, Premier François Legault announced retaliatory measures on Tuesday and a program to offer vulnerable companies up to $50 million in loans.
Legault's announcement came hours after U.S. President Donald Trump imposed 25 per cent across-the-board tariffs on Canadian goods, and a 10 per cent levy on energy products — penalties the premier said could cost the Quebec economy up to 160,000 jobs if they are maintained longer than one year.
"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 not going to let ourselves be intimidated by Donald Trump."
The premier says the loans will offer liquidity to companies over the next 12 months to give them time to adjust their business models or supply chains. 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.
As well, Legault says the province will pull U.S. alcohol from shelves at stores run by the provincial liquor monopoly, and penalize American companies who bid on public contracts. The province will impose penalties of up to 25 per cent on bids by American companies who participate in public calls for tenders if those companies aren't already established in Quebec.
Legault warned that the tariffs would hurt the province's economy, and said a prolonged trade war could cost up to 160,000 jobs. However, he said the province has tools it can leverage to help it weather the storm, such as the province's investment arm and the 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."
While Trump has imposed a 25 per cent tariff on most goods, Legault 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 — a sign the United States needs Quebec and Canadian goods, he said.
During a Tuesday morning news conference in Ottawa, Trudeau suggested Trump is trying to trigger "a total collapse of the Canadian economy, because that will make it easier to annex us." He said Canada's focus is "on getting these tariffs lifted as quickly as possible."
Ottawa is retaliating with immediate tariffs on $30 billion worth of American goods, followed by further tariffs on another $125 billion worth of American products in 21 days. Trudeau said he will discuss a collective response with the premiers Tuesday afternoon, including several non-tariff measures.
A recent study by the Canadian Chamber of Commerce says the Quebec cities most at risk from tariffs are Saguenay, Trois-Rivières, and Drummondville.
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.
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.
Meanwhile, the mayors of Quebec's three largest cities are hoping to impress upon American leaders during a trip to Washington this week that the tariff war will have repercussions for both Canada and the United States.
Montreal Mayor Valérie Plante, Quebec City Mayor Bruno Marchand and Laval Mayor Stéphane Boyer will be participating in a meeting to mark Great Lakes Day, which will include around 30 mayors of Canadian and American cities located near the Great Lakes and the St. Lawrence River.
“The citizens of both countries will suffer the consequences of this economic war and it is our duty, as a city, to do everything in our power to preserve as many links as possible with our allies,” Plante said in a statement.
This report by The Canadian Press was first published March 4, 2025.
Maura Forrest and Morgan Lowrie, The Canadian Press
