Trade war with the U.S. threatens Quebec economy
By William Crooks
Local Journalism Initiative
A new trade dispute between Canada and the United States is already sending shockwaves through Quebec’s economy, with experts warning of severe consequences for key industries. As of March 4, the U.S. government has imposed a 25 per cent tariff on various Canadian imports, prompting Canada to respond with its own retaliatory measures. The federal government has introduced tariffs on $30 billion worth of U.S. goods, with an additional $125 billion in potential countermeasures currently under consultation.
Professor Mathieu Arès, an Applied Politics expert at the University of Sherbrooke, believes these tariffs could push Canada into a recession. “We’re looking at an estimated economic contraction of 1.5 to 2.6 per cent,” he said. “This isn’t just a minor disruption—it’s a serious economic blow.”
Impact on Quebec’s industries
The tariffs are expected to hit Quebec’s construction and forestry sectors particularly hard. The Association de la construction du Québec (ACQ) has strongly denounced the tariffs in a press release, warning that the higher cost of American building materials will drive up prices and slow down projects. Many essential materials used in Quebec’s construction industry come from the U.S., and finding alternative sources will take time. The ACQ is urging the federal government to ensure its countermeasures do not worsen the situation for local businesses.
Meanwhile, the province’s forestry sector, which exports 85 per cent of its products to the U.S., is also in jeopardy. The retaliatory tariffs may affect American imports of essential Canadian resources, including aluminum, copper, potash, and oil. In response, Quebec’s Minister of Natural Resources and Forests, Maïté Blanchette Vézina, has announced in a release the creation of a special task force aimed at diversifying export markets. “We must protect Quebec’s economy by reducing our dependence on the American market,” she said, emphasizing the need to develop trade relationships with Europe and Asia.
