Quebec investing up to $50M in loans to companies in counter measures to U.S. tariffs

Quebec will provide local companies up to $50 million in liquidity loans for 12 months to help them survive and reposition themselves to be less dependent on trade with the United States. 

Premier François Legault held a news conference in Montreal Tuesday afternoon with provincial Economy Minister Christine Fréchette and Treasury Board President Sonia Lebel to announce a series of measures aimed at softening the blow of U.S. tariffs on the province's economy. 

"I think we can fairly say a trade war is starting," Legault said, adding he was optimistic U.S. President Donald Trump would back down and come to a "winning" trade deal with Canada. 

"But Quebecers can expect the coming months — if the tariffs stay in place — to be difficult," he said. 

The province will also be offering loans with low interest rates and flexible pay-back times for companies who want to increase their productivity, said Fréchette. She noted that though Quebec's economy has been strong and increasingly diverse since 2018, it has lacked in productivity compared to the U.S. and other parts of Canada and has become too dependent on the nearby U.S. market. 

Fréchette said she'd met with more than 100 Quebec companies and regional boards of commerce and that she'd observed "determination, resilience and solidarity."

"I'm confident we're going to come out of this storm stronger," she said. 

Legault said he wants to improve Quebec exports to the rest of Canada, which he said have already climbed 34 per cent in the past six years. He said he was working with Ontario Premier Doug Ford to go "sector by sector" to find ways to improve interprovincial trade.

In an interview on Radio-Canada Monday evening, Legault estimated the province could lose up to 160,000 jobs with the 25 per cent tariffs, which are expected to hit hard for the province's metals and manufacturing industries.

LeBel announced that the province would be prioritizing local companies in its calls for tender and that it would be imposing a 25 per cent tax on American companies applying to calls for tender for public projects.

She said U.S. companies often provided IT, medical and scientific supplies and that she wanted to encourage Quebec companies to develop expertise in those sectors.

One of Quebec's largest exports to the U.S. is the aluminum it produces. Energy and primary minerals, like aluminum, coming from Canada have a lower tariff — at 10 per cent. 

Legault said he wasn't surprised Trump had imposed a lower tariff on those sectors, given how much the U.S. economy relies on them. For example, Ford F-150 trucks use Quebec aluminum, the premier said. 

"I'm hopeful that Donald Trump will come back to reality and realize that his strategy is bad, bad for Americans," Legault said.

WATCH | These are some of the ways tariffs could impact Quebec: 

Can Quebec afford a tariff battle?

5 days ago

Duration 2:40

Nearly eight per cent of Quebec’s output is directly linked to U.S. exports. Despite the province's projected $11-billion deficit, experts say Premier François Legault's government has funds set aside for emergencies like this. But they say the province might need to be more surgical in its response.

Monday, Legault had said he also wants to stimulate diversification efforts by increasing available funds at Investissement Québec in its upcoming budget.

"We must absolutely redraw Quebec's economy," he said.

The premier said he is not excluding anything given the magnitude of the tariff war Canada now finds itself in. 

"We have to be able to make Mr. Trump pay for decisions that make no sense, even for Americans," he said.

SAQ removes American products from its shelves

Legault also said he has asked Quebec's liquor board — the Société des alcools du Québec (SAQ) — to pull American products from its shelves.

On its website, the SAQ announced that, as of Tuesday, it is removing all products from the U.S. from its stores and will stop supplying them to agencies, grocery stores, bars and restaurants. It will also stop importing all American products destined for the Quebec market, including wines, spirits, locally bottled American products and beers in transit to brewers.

The operation is expected to take a few days.

"In our stores, the vast majority of American products will be replaced by Quebec products, as well as Canadian products, depending on availability," said the SAQ. "In the meantime, we remind you that our customers have access to a wide range of products from here and around the world."

In a statement to Radio-Canada, François Vincent, the vice-president of the Quebec branch of the Canadian Federation of Independent Businesse, highlighted the government's "proactivity" but said it's crucial to take into account all companies. 

Given the scale of the issue, he added that structural measures were needed to boost the productivity of small businesses, notably through tax reductions. 

Before Legault's afternoon conference, Parti Québécois Leader Paul St-Pierre Plamondon asked the premier and his provincial counterparts on X to "stick to interventions and a tone that demonstrate that they have kept a cool head and to stick to surgical fees that have the potential to have a political impact in the United States." 

Quebec Conservative party leader Eric Duhaime welcomed St-Pierre Plamondon's "good attitude," but added that unlike him, the Conservatives are proposing "concrete solutions," including building oil and gas pipelines, exploiting "our" natural gas, getting rid of interprovincial barriers, and reducing paperwork, regulations and taxes for Quebec businesses. 

Aluminum plant announces closure — then reopens

After announcing its closure, aluminum plant Alubar Métaux told workers it would resume operations Wednesday morning until at least March 12, according to the United Steelworkers union (USW).

The plant in Bécancour, Que., said it was forced to shutter its doors Monday night after U.S. President Donald Trump confirmed he was moving forward with the tariffs, according to a news release sent out by the union earlier Tuesday morning.

The plant, which produces aluminum rods and employs 70 people, communicated with workers again around 11 a.m., saying it would reopen. According to the union, the company told workers the closure was temporary and due to a maintenance operation.

"This is an evolution, not a misunderstanding," said a USW spokesperson in an email.

The Quebec director for the union, Dominic Lemieux, said the company's initial closure came as a surprise. He said he expects there will be more closures announced in the aluminum transformation, manufacturing and forestry industries.

"We're going to have really bad news upcoming in the next days, next weeks, if the tariffs are there for a long time."