MONTREAL — Quebec Premier François Legault will announce Tuesday afternoon his province's response to the start of the trade war with the United States, ahead of a meeting with Prime Minister Justin Trudeau and the other premiers.
Legault has said his government will launch a fund to give short-term financing to Quebec companies vulnerable to the tariffs that U.S. President Donald Trump imposed on Canadian goods earlier in the day. The premier has also called on companies looking to expand to apply for funding with the province's investment arm — Investissement Québec.
Trump's executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, took effect at 12:01 a.m. Legault is scheduled to announce his government's response at 1 p.m. in Montreal, ahead of a virtual meeting with Trudeau and the other premiers this afternoon.
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 this afternoon, including several non-tariff measures. He pointed to possible limits on American companies bidding on Canadian contracts as one example — something Legault has previously discussed.
Legault has said up to 160,000 jobs in Quebec could be lost if 25 per cent tariffs are maintained across the economy.
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
