Trade disputes result in job losses and business closures in Quebec as the American trade war intensifies
In a concerning development for Quebec's economy, increased tariffs on Canadian goods have begun to take a toll on various industries and businesses across the province. Economist Julian Karaguesian warns that more companies could potentially face the same fate due to these tariffs.
The tariffs, which rose from 25% to 35% in 2025, have already led to layoffs and shutdowns. For instance, a lumber mill in Saint-Michel-des-Saints announced it is letting go of 250 employees and suspending its activities until October, owing to the tariffs. Another company based in Saint-Georges, known for manufacturing semi-trailers, is planning to lay off more than a hundred workers.
The automotive manufacturing sector, steel and aluminum sectors, agriculture, consumer goods manufacturing, and food processing are among the industries most affected by these tariffs. Quebec's auto parts producers and assembly plants face job losses and production disruptions due to the integrated supply chain with the U.S.
Quebec’s metal producers and associated industries have also been impacted by sectoral tariffs on steel and aluminum. In the agricultural sector, poultry farmers, cattle producers, and other agricultural businesses face reduced exports and market uncertainty. Businesses producing household appliances, furniture, clothing, shoes, and sports equipment see increased costs and reduced competitiveness in the U.S. market.
The food sector, including producers of beverages and other consumables, is also affected by tariffs and export restrictions. The escalation of tariffs and lack of a trade deal heightens risk for Quebec's industries heavily reliant on cross-border trade.
Canada's retaliatory tariffs on U.S. liquid, vegetables, and miscellaneous consumer goods have further escalated the trade tensions impacting Quebec's export-reliant economy.
Quebec Premier François Legault has expressed concern over the impact of these tariffs on businesses and workers in Quebec. He emphasizes the importance of diversifying Quebec's markets to mitigate the risks associated with relying heavily on cross-border trade.
Economic analysis suggests that while Quebec and the broader Canadian economy show resilience, the tariffs lead to reduced efficiency and could lower growth and output in affected sectors, particularly if the trade agreement protections erode or expire in 2026.
However, Karaguesian sees this situation as an opportunity for Quebec to expand its export markets and build a stronger Canadian economy. The tariffs are a clear sign that the trade war with the United States is escalating, but it is crucial for Quebec to adapt and respond proactively to these challenges.
For many Montrealers, the latest news is a reminder to buy local. By supporting Quebec businesses, residents can help mitigate the impact of tariffs and contribute to a stronger, more resilient local economy.
- The increased tariffs on Canadian goods have affected various industries in Quebec's economy, including automotive manufacturing, steel and aluminum, agriculture, consumer goods manufacturing, food processing, and business sectors such as household appliances, furniture, clothing, shoes, and sports equipment.
- Quebec Premier Francois Legault has expressed concern over the impact of these tariffs on businesses and workers in Quebec, emphasizing the importance of diversifying Quebec's markets to mitigate the risks associated with relying heavily on cross-border trade.
- Economic analysis suggests that while Quebec and the broader Canadian economy show resilience, the tariffs could lower growth and output in affected sectors, particularly if trade agreement protections erode or expire.
- Economist Julian Karaguesian sees this situation as an opportunity for Quebec to expand its export markets and build a stronger Canadian economy, stressing the importance of adapting and responding proactively to the challenges posed by the escalating trade war with the United States. For many Montrealers, this means buying local to help mitigate the impact of tariffs and contribute to a stronger, more resilient local economy.
