Quebec businesses brace for impact
By William Crooks
Local Journalism Initiative
Quebec businesses are facing uncertainty as new possible tariffs imposed by the U.S. threaten cross-border trade. With industries from Christmas tree farming to granite production bracing for potential economic shocks, local business owners are strategizing on how to navigate the shifting trade landscape.
Christmas tree growers fear major losses
Jimmy Downey, owner of Downey Tree Farm and Nursery in Hatley and a board member of the Quebec Association of Christmas Tree Producers, emphasized the stakes for the industry. “Quebec exports nearly two million trees to the U.S. each year,” he said. “For producers, a 25 per cent tariff is a major hit.”
Downey, whose nursery sends between 40-50 per cent of its transplants south, explained that price hikes could drive customers toward artificial trees. “We’re already at a breaking point where consumers hesitate to pay for a natural tree when an artificial one is just a few dollars more,” he said. If prices climb, many customers may switch permanently. “Once they go artificial, we lose them for years.”
The industry is exploring alternative markets in Mexico, Aruba, and Central America, but Downey stressed the challenge of finding new buyers quickly. “It takes 10 to 15 years to grow a Christmas tree. American buyers can’t just replace our supply overnight. For the next 15 years, someone will have to absorb that 25 per cent.”
Adding to the pressure, Quebec has historically been a Christmas tree powerhouse due to its cold climate, which naturally preserves trees for longer periods and eliminates pests. “Our trees are fresh and pest-free when shipped, unlike those from warmer regions where pests can survive transport,” Downey said.
Downey also highlighted the impact on seasonal workers who depend on the Christmas tree industry. “If exports drop, that means fewer jobs for the people who cut, bundle, and ship the trees. The ripple effect could be massive for small towns that rely on this seasonal employment.”
Granite sector caught in the crossfire
In Stanstead, where granite is the dominant industry, Mayor Jody Stone is watching developments closely. “We have companies like Rock of Ages, which operates both here and in Vermont, as well as others with cross-border operations,” he said. “Countertops and other granite products are regularly delivered to U.S. customers.”
Stone, also a small business owner, described the atmosphere as one of deep uncertainty. “My wife and I run a distribution company for aerosols and greases. We source some products from the U.S., and we’re questioning what this means for us and our clients.” He noted that larger firms with international supply chains could be significantly disrupted. “One of our clients manufactures in Mexico. If tariffs impact their operations, it could ripple back to us.”
To mitigate risks, Stone is considering shifting suppliers. “We’re looking at sourcing more from Canada or even China, though we’ve avoided that so far,” he said. “We might also have to stockpile inventory to soften the blow.”
Limited impact for dairy, but concerns remain
Paul-André Veilleux, supply manager at Coaticook Ice Cream, said the tariffs pose minimal immediate risk to his company. “We’re 100 per cent Canadian-made and don’t export to the U.S.,” he said. “If anything, we might benefit as more consumers start paying attention to product origins.”
However, Veilleux acknowledged broader economic uncertainty. “Other industries being hit could still affect us indirectly,” he said. “If suppliers or local businesses struggle, there’s always a potential impact.”
Business leaders demand government action
A recent survey by the Federation of Chambers of Commerce of Quebec (FCCQ) found that 36 per cent of businesses fear for their survival in the event of a full-scale tariff war. A majority (90 per cent) of respondents want the federal government to impose countermeasures, though there is concern over the potential for escalation.
Véronique Proulx, FCCQ’s president-director general, called for immediate support. “We need financial aid for affected businesses,” she said in a press release. “If tariffs extend to critical supply chain components, it could threaten the viability of many Quebec firms.” She warned of possible job losses and price increases. “A second wave of tariffs could be devastating. We must act fast.”
The Canadian government has announced plans for countermeasures, but businesses fear these could exacerbate problems. “If we tax essential inputs, we risk doubling the burden on our own exporters,” Proulx said.
Hopes for diplomacy
Despite the tensions, business leaders are hopeful for a resolution. “We’re pushing for American decision-makers to recognize our industries’ importance,” Proulx said. Downey pointed out that Canadian-supplied Christmas trees have even made their way to the White House in past years, underscoring the importance of Quebec’s tree industry to the U.S. market. “Our economic ties run deep. We hope logic prevails before irreparable damage is done,” Proulx added.
D.J. Myers, manager of the Eastern Townships Wrestling Association and a dual citizen, offered a different take on the situation. “I see Trump as a giant troll,” he said. “He’s getting people riled up because that’s what he does, and people take the bait.” Myers believes the situation could have an unintended benefit. “If some troll causes Canadians to focus on the Canadian economy by purchasing Canadian goods, I think he’s done us a favour.”
For now, Quebec’s business community is watching developments closely, bracing for impact while seeking new strategies to stay competitive.