Chambre de commerce et d’industrie de Québec

Tariff whiplash bad for business, CCIQ head says

Ruby Pratka, Local Journalism Initiative reporter

editor@qctonline.com

Quebec City-area businesspeople are “tired of getting yanked back and forth” after months of uncertainty over tariffs on imports to the United States, Frédérik Boisvert, president-director general of the Chambre de commerce et industrie de Québec (CCIQ; Quebec City chamber of commerce and industry) told the QCT late last week, shortly after the Trump administration suspended plans to put tariffs on Canadian goods for a second time.

On Feb. 1, U.S. President Donald Trump signed an executive order imposing a 25 per cent tariff on all Canadian products entering the U.S., except for energy imports, which would be subject to a 10 per cent tariff. On Feb. 3, the day before tariffs were to take effect, the imposition of the tariffs was suspended for 30 days, leading Canada to pause its own planned retaliatory tariffs. On March 3, the Trump administration confirmed its intention to impose tariffs; three days later, Trump announced another pause until April 2. As of this writing, separate 25 per cent tariffs on steel and aluminum imports were expected to go into effect March 12. Outgoing federal finance minister Dominic LeBlanc has said Canada plans to introduce retaliatory tariffs on April 2.

On March 4, Premier François Legault and Economy Minister Christine Fréchette announced two emergency loan programs for affected and potentially affected businesses planning to scale up productivity or diversify markets, and a 25 per cent penalty measure for U.S. businesses applying for Quebec government contracts. A spokesperson for Fréchette told the QCT the measures would remain in effect for the time being.

Boisvert said there were many local businesses that exported to the United States, both in the industrial parks and in the city proper. “Seventy per cent of our manufacturing exports go to the United States. There’s been an impact on the number of orders received, which is also impacting jobs. I have met with some members who had expansions planned, which they can’t go ahead with because there’s too much uncertainty; others wanted to scale up capacity and now that is cancelled.” He said hundreds of jobs were at stake in the region; Legault has said provincewide job losses could surpass 160,000 if the tariffs are fully implemented.

Boisvert said he hoped to see a “muscular” response from the Quebec and Canadian governments if the trade war drags on. “We are reliable and faithful partners being dragged through the mud … because of the will of one person and a few people around him.”

Boisvert said the CCIQ is trying to keep its members informed, and accompanying companies that are trying to diversify their markets and reduce their reliance on the

United States. “Europe is the biggest market in the world, there are incredible things going on in Asia … and in the francophone African market, Quebec is well-regarded there and there’s a lot of demographic growth.

“I believe we will find a solution [to the trade dispute], but there will be a pretty much complete loss of trust in the U.S. administration,” Boisvert concluded. “We need reliable partners and we’re getting the opposite.”