US-Canada relations

Tariff whiplash bad for business, CCIQ head says

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.”

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Departing U.S. envoy Cohen: ‘You cannot tear this partnership apart’

Departing U.S. envoy Cohen: ‘You cannot tear this partnership apart’

Peter Black, Local Journalism Initiative reporter

peterblack@qctonline.com

The departing United States ambassador to Canada, while cleaving to diplomatic discretion, lauded the strength of U.S.-Canada relations on the eve of the inauguration of Donald Trump as the next American president on Jan. 20.

David L. Cohen, speaking on Jan. 15 at a farewell visit to the U.S. consulate in Quebec City, said, “Everyone wants to talk to me about what happens in the United States on Monday. I am not worried. I am not worried about it from the perspective of the U.S.-Canada relationship, because you cannot tear this partnership apart. You cannot break this friendship. It is too deep, it is too enduring. It is everlasting.”

Cohen added, “That is not to say that there aren’t going to be some choppy waters.” He was referring to Trump’s threat to impose across-the-board 25 per cent tariffs on Canadian and Mexican imports as soon as he takes power. The threats have rocked the Canadian political firmament and forced leaders to scramble to prepare a response.

Cohen replaced Trump appointee Kelly Craft in December 2021, filling a two-year vacancy after she departed for the United Nations ambassadorship. A corporate lawyer and personal friend of former president Joe Biden, Cohen has clearly come to love Quebec City, and has visited the consulate with the spectacular view of the St. Lawrence River four times in his tenure.

Accompanied by his wife Rhonda Cohen at the reception attended by several dozen local notables, Cohen lauded the landmarks of the city, including the neighbouring Château Frontenac.

“It is at the Château that the late president Ronald Reagan and the late prime minister Brian Mulroney sang ‘When Irish Eyes Are Smiling’ in 1985 at the end of the so-called Shamrock Summit,” Cohen said. “More than any other single moment, this summit led the way for the world’s most enduring, profitable, successful and mutually beneficial trade relationships via the North American Free Trade Agreement or NAFTA, which later evolved to become the USMCA.”

Cohen also noted the significance of the Citadel. “Also known as America’s Gibraltar, it’s home to Canada’s very first French-speaking regiment, whose brave soldiers fought alongside the Americans in the two World Wars. I cite all these not just for a history lesson, but because they’re all reminders of the rich and enduring relationship that exists between Canada and the United States.”

Cohen, 70, informally said he has not decided what he will do now that his diplomatic stint is over. He said in his remarks that he and his wife plan to return to visit the city he has come to love.

“Serving as the United States ambassador to Canada is as good a job as you can have, and it’s been the honour of my lifetime to represent my friend, President Biden, and the United States in this wonderful country and in this wonderful province.

“When I first arrived in Canada, I knew that I was stepping into a role defined by longstanding and exceptional relations. The United States and Canada share more than just a border. We share common values, share economic interests and an enduring friendship that spans generations.

“As I reflect on the incredible journey I’ve had over the past three and a half years, I am filled with gratitude not just for the opportunity to serve, also for the relationships, conversations and co-operation that have shaped my tenure. I will never forget the generosity and warmth that I have felt in Quebec City.”

The ambassador lauded the leadership of Consul General Danielle Monosson, “how she distinguishes herself by her humanity. I’ve seen and learned that Danielle really cares. She cares about United States foreign policy. She cares about Canada. She cares about the province of Quebec and Quebec City.”

In an informal comment to the QCT, Cohen said he especially enjoyed attending two editions of the Quebec International Pee-Wee Hockey Tournament in the city.

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