Even though Canada and the U.S. have averted an all-out trade war — for now — Premier François Legault says it’s time to look to new markets to export Quebec goods.
Legault said Quebec should explore more business opportunities with other provinces and in Europe to be less reliant on our southern neighbour as Canada got a 30-day reprieve Monday from U.S. tariffs announced by President Donald Trump.
He called the delay “good news” but cautioned there is still a great deal of “uncertainty” with the president’s next moves.
“What is clear with Mr. Trump is that there is still this possibility [of tariffs] hanging over our heads, and it’s not good for our economy,” he told reporters in Montreal.
Legault was ready to impose retaliatory measures against the U.S. if Trump’s tariffs went into effect Tuesday, but said those are now paused. That includes removing American alcohol products from SAQ shelves.
“Those measures are still in mind, but we’re not putting them in place until it’s confirmed that there will be tariffs from Mr. Trump,” he said, warning that Canadians need to expect “the worst.”
“It does confirm something that we need to put a lot of effort into diversifying our markets, even if the tariffs are suspended for 30 days.”
He said his minister of Economy, Innovation and Energy, Christine Frechette, would looking into boosting productivity in Quebec and diversify its markets.
He made the remarks after a busy day of meetings with heavy hitters in virtually all of Quebec’s major industries.
The premier and his team met with executives from the Desjardins Group and National Bank on Monday, as well as CEOs from Investissement Quebec and the provincial pension fund manager (Caisse de dépôt et placement du Québec). Legault and his ministers also met with Hydro-Québec CEO Michael Sabia, who said he agreed to speed up investments in 2025.
Over the weekend, Legault had vowed to protect Quebec jobs and fight back against Trump’s tariff threat.
“You could say that this won’t last, but that would be dangerous to think like that. On the contrary, we need to prepare ourselves for our economic system to be disrupted over a long period of time. And in business, I can tell you that there is nothing worse than uncertainty,” he said on social media.
Quebec looking to get out of Starlink contract
Before the tariff delay was announced, Ontario Premier Doug Ford announced he was ripping up its $100-million deal with Elon musk’s Starlink satellite internet service in retaliation for the looming tariffs on Canadian goods. However, Ford later said, “With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures.”
Musk, the world’s richest person, is a close adviser to President Trump. When asked if Quebec would get rid of its deal with Starlink, Legault said it wouldn’t be that easy.
“I don’t like the owner,” Legault said, in reference to Musk, “but of course, we have to be careful, because right now, it gives services to people in Quebec, and we have also a binding contract, so I don’t want to end up having to pay for large fees because we don’t respect the contract. And I want also Quebecers to keep services. We are reviewing the starting contract and see what we can do. Ideally, we would like to get out of this contract, but we want to do that in the right way.”
Montreal reviewing lists
Montreal Mayor Valérie Plante responded on social media on Monday, saying that Montrealers need to stick together and not hesitate to respond to the threat.
“In the coming days, we’ll work hand-in-hand with the higher level governments to respond with force and determination against this unjustified attack on our economy,” she said. “The friendship between our nations has always been based on mutual respect. If Washington chooses confrontation, we will respond with the same determination.”
Plante said her administration is reviewing the list of U.S. companies on the city’s supplier list to find local or international replacements. The city is also considering a 25 per cent tariff on American suppliers, she said.
After the 30-day delay was announced, she said the city will continue to “diversify our business partnerships and collaborate with senior governments. Let’s stick together!”
Heureuse d’apprendre que les tarifs douaniers seront mis sur pause pour au moins 30 jours.
— Valérie Plante (@Val_Plante) February 3, 2025
On continue de diversifier nos partenariats commerciaux et de collaborer avec les gouvernements supérieurs. Restons unis et solidaires! https://t.co/VynVNOgoT8
Opposition parties react
The Quebec Liberal Party (PLQ) called on the CAQ government to respond to Trump “intelligently” and boost diplomatic relations with Canadian provinces.
“We all remember the failures of the pandemic and the poorly put together aid programmes. We won’t let him improvise. This time, Quebec is leaving with a serious handicap. Unlike during the pandemic, we no longer have [$7 billion] in reserves. With a historic deficit of more than $11 billion, our room for manoeuvre is reduced, our capacity to act weakened,” wrote interim leader Marc Tanguay in a statement. “The next few weeks and months will be long. In the midst of this storm, we cannot lose sight of our public networks and the fact that Quebecers are not getting the services they are entitled to.”
Meanwhile, Québec solidaire demanded an emergency meeting in the Quebec legislature.
The party’s letter to National Assembly President Nathalie Roy reads as follows: “By holding an emergency debate, elected representatives will not only be able to demonstrate their commitment to defending Quebec’s interests, but will also be able to propose concrete solutions to mitigate the impact of these tariffs. This is essential to maintain public confidence and ensure Quebec’s economic stability. This is why this debate must be held as a matter of urgency and must not be delayed any further.
When asked by reporters on Monday, Legault said he was “open” to having the emergency debate.
What is Trump’s strategy?
Keeping leaders on their toes seems to be a key negotiating strategy for the U.S. president, but sometimes it can be a pointless exercise to try to understand what he really wants, according to Concordia University political science professor Graham Dodds.
“After years of looking at this guy, I think sometimes the search for logic or reason, it’s a fool’s errand. I think sometimes it’s just bluster and BS and not much more to it. And even when there is, to be charitable, Mr. Trump is often mercurial. His mood changes, his desires change,” Dodds said in an interview.
“So, even if you can figure out what he wants at any one point in time, it’s apt to change. In other words, I think trying to figure out what’s behind all this, there just might not be much behind it at all.”
There have been several media reports pointing out the fact that only a small fraction of the fentanyl and illegal immigration that enters the U.S. is at the northern border.
Statistics from the U.S. Customs and Border Protection shows that just 0.2% of U.S. border fentanyl seizures were at the Canadian border last year, compared to 96.6% on the Mexican border.
There’s a similar distinction when it comes to immigration.
Among the 1.6 million U.S. Border Patrol encounters with migrants at unofficial ports of entry, just 23,721 — or about 1.5 per cent — were at the Canadian border last year, though the number was significantly higher compared to the previous two years.
“It’s entirely possible that Mr. Trump’s view of the border is just inaccurate,” Dodds said.
“He has not always been one to be firmly connected to factual reality like the way most of us experience it. He’s also not been one to let facts get in the way of a good argument. So, I just don’t know what it looks like in his mind. I don’t think anybody does.”
With files from CTV News Montreal’s Maya Johnson
