CaDCR staff writer
The Province of Quebec will provide local companies up to $50 million in liquidity loans for 12 months to help them survive and reposition themselves to be less dependent on trade with the United States.
Premier François Legault announced measures aimed at softening the blow of U.S. tariffs on the province’s economy, saying the goal is to “reshape” the economy. He outlined plans to offer financial aid to businesses and accelerate the pace of infrastructure development.
“We need to keep a cool head, but we also want to be very clear: We are not going to let ourselves be intimidated by Donald Trump,” he told reporters during a news conference in Montreal.
While Ontario Premier Doug Ford said his government will ban American companies from $30 billion worth of procurement contracts, Legault announced a penalty of up to 25 per cent on bids by American companies.
Legault said Quebec “must not rule out anything for the future,” including targeting electricity exports, but it’s not something he’s considering in the short term. However, he warned, a prolonged trade war could cost up to 160,000 jobs and the province has tools it can leverage to help it weather the storm, such as the province’s investment arm and the power utility, Hydro-Québec, which plans to spend billions of dollars in the coming years to build capacity.
“Even if it will be tough, I think at the end, in one year, two years, our economy will be stronger, less dependent on the United States,” he said.
Quebec will offer liquidity to companies over the next 12 months to give them time to adjust their business models or supply chains. Companies can receive loans up to $50 million, with a maximum term of seven years, and a deferral of up to 24 months to begin repaying them.
The province also wants to boost productivity by offering interest-free loans to businesses with investment projects worth more than $10 million.
Legault said the 25 per cent penalty on U.S. bids is to ensure American companies win as few government contracts as possible. More than 96 per cent of public contracts already go to companies with a presence in Canada.
Meanwhile, the Quebec director of the United Steelworkers says tariffs threaten several sectors including aluminum, lumber, steel, manufacturing and auto parts and urged the government to modernize factories, increasing domestic transformation of natural resources, finding new clients and improving the social safety net.
