Montreal
Quebec Premier François Legault wants Prime Minister Justin Trudeau to appease Donald Trump by tightening border security and clamping down on the illegal drug trade in response to the president-elect’s threat of imposing 25 per cent tariffs on Canadian and Mexican imports.
Legault wary of trade war as major Quebec industries rely on U.S. exports
Quebec Premier François Legault said tens of thousands of jobs could be lost in the province if U.S. president-elect Donald Trump moves forward with 25 per cent tariffs on Canadian-U.S. exports next year. (Sylvain Roy Roussel/CBC)Quebec Premier François Legault wants Prime Minister Justin Trudeau to appease Donald Trump by tightening border security and clamping down on the illegal drug trade in response to the president-elect’s threat of imposing 25 per cent tariffs on Canadian and Mexican imports.
Legault held a news conference in Quebec City Tuesday afternoon, telling reporters tariffs of 10 per cent, as Trump had previously threatened during his campaign, or 25 per cent, as he threatened Monday, would have disastrous effects on Quebec’s economy.
“Twenty-five per cent tariffs would mean tens of thousands of lost jobs for Quebec and for Canada so we have to take it very, very seriously,” Legault said.
The premier said he believes Trump’s fears about a rise in migration at the U.S. northern and southern borders are “legitimate.”
“I was the first to say the border was a sieve,” Legault said. “The numbers are a lot bigger in Mexico but there is still an important number of people going through Canada to get to the U.S.”
He said he wanted Canada to avoid a tariff war by retaliating with its own tariffs on American goods. Quebec’s exports to the U.S. amount to $87 billion while its imports from the country represent half of that at $43 billion, Legault said.
Ontario Premier Doug Ford and Conservative Leader Pierre Poilievre have both suggested Canada should impose retaliatory tariffs if Trump follows through on his threat after his inauguration on Jan. 20.
Trudeau has agreed to a meeting with Canadian premiers on Wednesday. Legault said he would be requesting a Quebec representative at all negotiations with the U.S. on trade moving forward.
He called on Trudeau to increase border security, including in the Kanien’kehá:ka community of Akwesasne which straddles three borders: Quebec, Ontario and New York.
A softwood lumber sawmill in Saguenay, Que. A spokesperson for the province’s forestry industry says half Quebec’s market is dedicated to U.S. exports. (Jacques Boissinot/The Canadian Press)Legault also said Trudeau should determine which industries the U.S. would not be able to do without — such as electricity and aluminum — and use them as negotiation tactics.
Nearly 70 per cent of Quebec’s exports are to the U.S., most of which are aircraft parts, aluminum, mineral fuels and forestry products.
Inflation on both sides of the borderQuebec had expected a Trump presidency to be uncertain and knew the threat of tariffs was looming, Benjamin Bélair, Quebec’s representative in Washington D.C., said in an interview on Radio-Canada’s Tout un Matin.
“For us, it’s not a surprise,” he said.
But he stressed that a 25 per cent tariff would penalize both Canadian and U.S. consumers. Quebec exports 90 per cent of its aluminum to the United States for use in manufacturing. A tariff on those exports would cause prices to rise.
“We think we can convince President Trump that we are a reliable ally and can help him achieve his economic development objectives without penalizing us,” Bélair said.
Jean-François Samray, head of the Conseil de l’industrie forestière du Québec, a forestry industry advocacy group, said exports to the U.S. make up 50 per cent of the market for Quebec’s logging products.
Quebec’s forestry sector is already mired in a tariff dispute with the U.S. over softwood lumber imports, Samray said. But a 25 per cent tariff would be catastrophic, and the first to feel its impact would be American consumers.
“The consumer will pay an extra price for software lumber, would pay an extra price for cardboard and paper and [wood] panels because the United States is not self-sufficient when it comes to wood products,” he said.
Julie White, a spokesperson for Manufacturiers and exportateurs du Quebec, an industry advocacy group, said 75 per cent of goods manufactured in Quebec go to the U.S.
She said the consequences of a 25 per cent tariff would be dire — on both the Quebec and U.S. economies. There would be job losses in factories on both sides of the border, she said.
“We need to be realistic about the effect of these measures on the economy and we need to take seriously what [Trump] is saying,” White said.
“He has the power to go through with these measures. He has talked about them in the past, so it’s not being alarmist, it’s being realistic to be to be scared today of these measures.”
ABOUT THE AUTHOR
Matthew Lapierre is a digital journalist at CBC Montreal. He previously worked for the Montreal Gazette and the Globe and Mail. You can reach him at matthew.lapierre@cbc.ca.