Quebec to loan companies up to $50M to counter 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 Finance 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.