Negotiating effectively with Trump must be the priority

Canada is going through an unprecedented crisis, while Donald Trump seems determined to carry out his threats. In this context, it was essential that the different levels of government unite in order to assume strong economic leadership in the face of the looming tariff war.

The Prime Ministers’ statement on Canada-US relations is excellent news for businesses. Finally, we feel a mobilization and a takeover! Companies have been waiting for this demonstration for weeks.

Don’t be intimidated and stand together. These elements are essential to preserve the health of local businesses and our economy.

The next step is to consult and involve businesses, in order to be able to effectively respond to the Trump administration’s threats.

The economic community wants and must be part of the solution. We must not bury our heads in the sand. We are starting a four-year marathon, strewn with uncertainties and upheavals.

Commercial diplomacy: everyone must contribute to it

Businesses must be involved in this unprecedented effort. We must be on the ground and interact with our American business partners to highlight the extent to which our economies are closely linked.

Indeed, Canada has a special place in the American economic scene, while we are the main customer of 36 American states. It is important to remember this in the United States.

Additionally, American businesses that have a foot on either side of the border will be hit hard by a tariff war.

I will have the privilege of being in Washington next week to meet several economic players. I am also committed to speaking up for our companies, both our large exporters who are on the front lines and our SMEs who are an intimate part of the supply chains. It is on them that the vitality of our regions rests.

More than ever, we must have serious discussions to consolidate business alliances.

We have ammo, let’s use it!

Contrary to popular belief, Canada has levers and ammunition to avoid economic consequences that would harm both parties.

We have critical minerals needed to secure supply chains and allow the United States to distance itself from China.

Tariff countermeasures should also be considered. In 2018 and 2020, the Canadian response to American surcharges on our steel and aluminum, with tariffs of 10% to 25% on various American products, also contributed to pushing back the Trump administration.

Everything must be done to avoid tariffs! But let’s be ready to play all our cards if significant tariffs come into effect.

Our governments can act now

Quebec and Canada can optimize their own strategies to increase their competitiveness. They must start by putting words into action by finally putting in place measures to promote local procurement in public contracts. The tax environment must also be up to par.

In addition, they must support businesses in order to promote the diversification of export markets, as well as imports.

Finally, one of the keys to competitiveness is the price of energy. Raising prices for businesses would not only be counterproductive, but would also deprive them of an important competitive advantage.

We must restore our balance of power and we have the necessary levers to achieve this. The unity demonstrated by our Prime Ministers represents an important milestone. Now, businesses must be included in strategic discussions to complete this strong Team Canada, ready to go to the front.

What do you think? Participate in the dialogue