An economic statement denounced by the Bloc and closely monitored by the industry

The Bloc MP for Manicouagan denounces the federal government’s growing deficit as well as Ottawa’s strategy to protect the Canada-US border, revealed during the presentation of the fall economic statement. For its part, the Aluminum Association of Canada estimates that Ottawa’s investments of $1.3 billion to secure the border could calm the ardor of the future American president and his intention to impose tariffs on exports Canadians.

It brews in Ottawa, breathes the Bloc MP for Manicouagan, Marilène Gill. Seriously, it’s unheard of, we’re experiencing historic momentsshe adds in reference to the political crisis which hit the capital on Monday following the surprise resignation of the federal Minister of Finance, Chrystia Freeland.

She judges that Minister Freeland has disowned the federal government and Prime Minister Justin Trudeau, a few hours before the tabling of the economic update.

The fall economic statement does not contain any big newsaccording to her, and especially attracts attention because of the budget deficit of 61.9 billion dollars.

Ottawa justifies the $21.8 billion increase in the deficit by unexpected expensessuch as expenses related to demands of indigenous peoples and allowances paid during the COVID-19 pandemic.

What we see is a government that spends enormously and what’s more, when I spoke about borders, we have the impression of an improvisationdenounces the MP.

Despite the $1.3 billion invested by the federal government to secure the Canadian-American border, Marylène Gill questions her strategy.

We don’t have a plan associated with that. We don’t know how the money will be spent. It’s worrying.

For its part, Ottawa explains that these sums will be distributed to various agencies and ministries, such as Public Safety Canada, the Canada Border Services Agency as well as the Royal Canadian Mounted Police to clearly show that attempts to circumvent border checkpoints […] are blocked.

The Manicouagan MP believes that Ottawa should provide businesses with loan guarantees for businesses to become more competitive and protect themselves in the event of tariffs being imposed by the future US administration.

The Aluminum Association is preparing

Ottawa’s economic statement comes at a worrying time for the North Shore’s industrial sector, which fears that U.S. tariffs will disproportionately affect the region.

In this context, the statement does not explicitly mention l’aluminiumbut the president of the Aluminum Association of Canada, Jean Simard, says he is monitoring certain tax measures from Ottawa that could apply to Canadian and Quebec companies.

I am thinking here of the clean technology investment tax creditindicates Jean Simard, citing innovations from the industry which aims to decarbonize production assets.

He emphasizes that Ottawa’s investments aimed at strengthening security at the Canada-US border and fighting organized crime can contribute to meet American expectations regarding border management and so, clean up the business climate entre Ottawa et Washington.

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The government, in this statement, seems to have taken measures to meet certain expectations. Is this going to be enough? Is this the right way to approach it? The future will tell us…

In November, President-elect Donald Trump threatened to impose 25% tariffs on all products entering the United States from Canada and Mexico “until drugs, particularly fentanyl, and all illegal immigrants stop invading [les États-Unis] ».

For our part, it is certain that tariffs of 25% have a devastating effect on the markets in the United States. […] and we will feel it in the short and medium termresponds the Aluminum Association of Canada.

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Asked about a possible transition of the aluminum industry to other international markets in order to free itself from the American market, Jean Simard indicates that he is certain that North American companies are evaluating their options according to different scenarios.

But the industry cannot make this change of direction overnight, warns Jean Simard, given that some Canadian aluminum producers have contractual obligations with American customers.