Quebec businesses are gearing up for what appears to be new tariffs from the United States as the deadline approaches for President Donald Trump's proposed 25% tariffs on Canadian exports. With the potential implementation set for February 1, the air is rife with concern and anticipation.
Quebec Premier François Legault has been vocal about the situation, assuring the public, 'On va passer au travers, ensemble,' highlighting his stance as the protector of Quebec's economic interests during this challenging time. His remarks have been echoed across various government and business sectors, as many seek to determine how best to react to the looming threat of increased costs on exports.
Justin Trudeau, the Canadian Prime Minister, has also weighed in, stating, 'Tout est sur la table,' indicating the government's commitment to respond proportionately and aggressively if tariffs are imposed. This potential imposition of tariffs is expected to stir significant disruption for businesses, particularly small to medium enterprises (SMEs), which form the backbone of the Quebec economy.
Numerous businesses have already begun re-evaluations of their operational strategies. For example, Carl Goyette, CEO of the natural energy drinks company Guru, revealed plans to relocate parts of his production to the United States to mitigate potential tariff impacts. 'Comme plusieurs autres entrepreneurs, au début, on n’y croyait pas trop,' he recounted, reflecting the disbelief many felt initially about the prospect of such tariffs after years of smooth trade relations with the US.
On another front, the vice-president of finances at Cambli, Philippe Rottenberg, has expressed how the tariffs are complicatively impacting business aspirations. 'Tous les scénarios sont sur la table. Tout va dépendre de notre capacité à rebondir et aller chercher d’autres marchés,' he warned, demonstrating the cautious stance businesses are taking as they explore alternate markets and strategies to keep afloat amid uncertainty.
The sense of urgency is palpable, as other business leaders have reported taking swift action to prepare for the worst. Many companies have reportedly sent six months' worth of goods to their US customers, anticipating the shock of tariffs. This proactive approach intends to cushion the blow should the tariffs come to fruition.
Despite this proactive stance among businesses, there remain skeptics within the industry. François Fauteux, managing partner at Phoenix Partners, voiced his disbelief at the proposed tariffs, stating, 'Ça n’a aucun sens,' arguing against the justification of these tariffs on all Canadian goods. He emphasized the improbability of such measures being enacted, considering the broader political dynamics at play.
The provincial government is aware of the delicate balance it must strike as it navigates these economic waters. Behind closed doors, Legault's government has been working to strengthen ties and networks with American entities to argue for Quebec products' importance to US industrial operations. Reports indicate direct contacts with members of the Trump administration to highlight how integral Quebec aluminum is to American manufacturing—from automobiles to defense technology.
The political backdrop adds another layer of complexity. With the Canadian government preparing for retaliatory measures and emphasizing the principle of 'dollar for dollar' response, the stakes are high. Trudeau's commitment to protect Canadian interests at the federal level mirrors Legault's similar promises to Quebecers, stabilizing their confidence during uncertain times.
Despite the political theatrics, clarity on immediate action plans remains to be seen, as Legault faces criticism for his lack of specific measures to counter the impending tariffs. The Premier has promised to engage stakeholders across various sectors, including manufacturers and those reliant on exports, to discuss potential impacts and collective solutions.
The countdown continues as Quebec businesses, the provincial government, and the federal actors engage with both caution and determination, knowing full well the potential economic ramifications the forthcoming tariffs could pose. How effectively they can navigate this uncertainty depends on the proactive measures they take in the coming weeks.