Quebec businesses brace for 50% U.S. tariffs as Canada walks away from talks

Canada suspended trade negotiations with the U.S. on August 24 after Washington demanded concessions on auto tariffs, trade deal autonomy, and Quebec's French-language protections. Prime Minister Mark Carney rejected what he called a "bad deal," and Finance Minister François-Philippe Champagne said the country won't compromise on core interests.

About $7.7 billion in Quebec exports now face 50 per cent U.S. tariffs. While aluminum producers — who ship 90 per cent of output to the U.S. — have already absorbed a 50 per cent tariff since last year, the bigger concern is downstream manufacturers processing that metal, says Jean Simard, president and CEO of the Aluminium Association of Canada. "They're the ones that are more impacted," he said. "It's going to impact small and medium businesses."

Trucking faces indirect but serious pressure. About 1.2 million trucks cross Quebec's border annually, carrying 55.5 per cent of Canada-U.S. trade value. CEO Marc Cadieux of the Quebec Trucking Association says layoffs are possible if cross-border shipments decline. "If trucks do not move and haul any more merchandise, obviously the workforce will have to be looked at," he said.

According to economic research, roughly 18,000 Quebec jobs are expected to be lost from the tariffs. A new Angus Reid poll finds 76 per cent of Canadians support Ottawa's decision to walk away, though 89 per cent worry about the impact on goods and services prices. Economist Moshe Lander at Concordia University says Canada's $2.5 trillion economy is large enough to absorb the shock overall — but individual workers and small businesses won't be insulated. "For Canadian businesses, the last thing that they need is uncertainty," Lander said.

Quebec Premier Christine Fréchette announced $11 billion in federal and provincial funding for six icebreakers, a project expected to support thousands of jobs and strengthen Canada's Arctic and trade routes. But rebuilding trust with the U.S. could take time, Simard cautioned: "The way things have been going, this is not a trustworthy relationship."