Here's how Trump's tariffs could affect major Quebec industries
Quebec's aluminum, forestry and manufacturing industries could be hardest hit
Just after midnight Tuesday, U.S. President Donald Trump imposed 25 per cent tariffs on virtually all Canadian goods in a move that will impact a number of Quebec's industries and jobs.
Quebec's aluminum, forestry and manufacturing industries could be among the hardest, with Premier François Legault saying it could cost Quebecers around 160,00 jobs over a few months.
In early February, Legault said Quebec is planning a similar loan program for businesses as it did during the COVID-19 pandemic in the event of tariffs — which were originally set to start on Feb. 4.
A recent Desjardins Group report noted Quebec's position was more vulnerable to tariffs than other provinces.
Here are some of the Quebec industries on the front lines of the trade war.
Aluminum
In Quebec, almost 40,000 jobs are tied to the aluminum industry.
The most reliable and closest supplier for the U.S. is Canada, says François Racine, the president and CEO of Alu-Québec.
The organization brings together producers, manufacturers and processors. In February, Racine said the Trump tariffs will result in the price of aluminum in North America going up by 25 per cent, making it less competitive and more expensive on both sides of the border.
In terms of long-term damages, he says aluminum parts being made in Canada could be replaced by those made elsewhere in the world where costs are lower.
According to Jean Simard, president and CEO of the Aluminum Association of Canada (AAC), the impacts will be felt more on the other side of the border, by the customers.
"Our plants will continue to operate. People will continue to work. But the shock will be felt broadly and immediately on the American side," he said.
Forestry
Back in November, Quebec forestry companies said they were worried Trump's re-election could lead to more plants in the province closing.
Forestry companies are already critical of paying a 14.54 per cent tax on lumber at the American border.
Jean-François Samray, CEO of Quebec Forest Industry Council, says the U.S. annually consumes 50 billion board feet — the unit of measurement for the volume of lumber. He says Quebec provides five per cent of that annually.
"In a perfect competitive market, it makes a huge difference on prices," said Samray.
"The United States is far from being self-sufficient."
He says roughly 50 per cent of what is produced in Quebec is exported to the U.S and that the newly imposed tariffs will affect the entire supply chain.
Manufacturing
Julie White, chief executive officer of manufacturers and exporters of Quebec, says it's a really dark day for the economy.
She says they're preparing for the slow down and freeze on investments in the manufacturing sector and losing productivity.
Job losses are expected as well, which is why she says there needs to be emergency funds available for businesses to help with cash flow.
Some manufacturing companies are trying to expand to new markets.
But for Huppé, a Quebec-based furniture company, shipping to Europe, for example, would make their furniture significantly less competitive, given the cost of transportation.
President Julie St-Arnaud says she's been communicating with American clients who represent half of its business.
Even last month, before the tariffs came into effect, some Quebec companies announced layoffs.
Quebec furniture-maker South Shore announced it would be laying off 115 employees. In a news release, the company said 70 per cent of its sales are conducted in the U.S. and that it had seen those plummet in the face of Trump's tariff threats.
Uniboard, a Laval-based wood products manufacturer, said it would be temporarily closing five production lines at its Sayabec plant in the Gaspésie region.
Canadian pantyhose-maker Sheertex announced it was temporarily laying off 40 per cent of the company's staff — placing blame on impending tariff changes being made by the U.S., where Sheertex does 85 per cent of its sales.
Fishing
Even with renewed calls to buy Canadian, some seafood processors say that doesn't solve the problem.
Bill Sheehan, the co-owner of E. Gagnon et fils and Pêcheries Marinard, has said his business will need to find markets elsewhere, possibly in Asia and Europe, because of the hundreds of millions of pounds of product.
Employing over 700 people seasonally, Sheehan says his company sells 75 per cent of its products such as lobster, shrimp and crab to the U.S.
He says the U.S. tariffs threaten to completely push his business out of some markets — with cold water shrimp acting as one example. Both Norway and Iceland are going to be able to sell the same shrimp in the U.S. without a tariff, says Sheehan.
ABOUT THE AUTHOR
With files from Rowan Kennedy, Mélina Lévesque, CBC's Quebec AM and Radio-Canada