Quebec tariffs could hit $7 billion as Fréchette meets with business leaders

Quebec could lose up to $7 billion in exports if the U.S. imposes 50 per cent tariffs on Canadian goods as planned for August 19, Premier Christine Fréchette said Thursday after meeting with business leaders from across the province.

"We're talking about up to nine per cent of our exports potentially being affected by these tariffs," Fréchette said at a roundtable in Montreal. "That equates to a potential impact of $7 billion, so it's colossal. I know that many businesses could be in survival mode if these tariffs are implemented."

The meeting brought together political and business leaders to explore how tariffs could affect Quebec companies and what provincial government support might help. But the source did not specify which sectors face the heaviest exposure or provide a detailed breakdown of the potential impact by industry.

Some Quebec companies are already feeling the squeeze. Since the tariff threat was announced, businesses have had U.S. customers cancel orders, worried about absorbing tariff costs themselves. "We're losing contracts, we're losing market share and a lot of companies are also considering major layoffs in the case where these tariffs would come in place," said Véronique Proulx, president and CEO of the Fédération des Chambres de Commerce du Québec (FCCQ).

Proulx said the FCCQ called on the government to put tax measures in place to help companies weather the impact. Fréchette confirmed the CAQ government is prepared to provide support: "We will be there should businesses need our support because there would be an important application of new tariffs. We've been there to help them since the beginning of this tariff war and we will be there again."

But the Premier pushed back on the idea that Quebec alone can solve the problem. "The federal government must be there also because they are the one who are negotiating. They are the one who can see the type of impact that will be triggered into the economy."

Jean Simard, president and CEO of the Aluminium Association of Canada, called the potential impact "disastrous." "The role of government in a situation like this is to care for the ones that are affected," he said. "They know who they can be, who they might be. They know how to intervene. Now it's to make this take shape afterwards."

Fréchette said negotiations with the federal government are ongoing, but a deal before August 19 is critical. Tariffs on the scale proposed would be "unbearable for our companies, our regions and for the Quebec economy," Proulx said.