The return of Donald Trump to the White House will cause turbulence for the Quebec economy, worries François Legault.
The CAQ Prime Minister spoke to the media on Wednesday, a few hours after the election of the new American president.
“I think we have to tell ourselves the truth, there are jobs at stake. So we will have to be very strategic, especially in key sectors, where Quebec has a lot of exports to the United States” , he declared from the outset.
Four economic sectors are particularly at risk, he believes, namely aeronautics, aluminum, wood and food products.
“We risk experiencing turbulence in the coming months, the coming years, in our relations with the Americans, but I am convinced that the privileged relationship that we have managed to build together is to the advantage of both parties,” still underlined the Prime Minister, on a more optimistic note.
Challenges
Indeed, the challenges will be numerous, as was the case during the last Trump administration.
The Republican candidate promised to impose customs duties of 10% on all Canadian products exported south of the border.
The free trade agreement with the United States and Mexico also expires in 2026 and will have to be renegotiated.
“We know how it was not easy, in the last negotiations, to protect supply management. This is something that is particular to Quebec. So, the federal government must understand the interests of Quebec farmers,” recalls François Legault.
Emissary for Quebec
He also intends to appoint an emissary responsible for relations with Washington.
“We hope that the federal government will bring it to the negotiating table with the United States,” said Mr. Legault.
Ontario could have the same type of representative to assert its priorities, underlines the Prime Minister.
Positive effects
But Finance Minister Eric Girard also sees positive elements in Donald Trump’s economic program.
“The financial markets appreciate the aspects relating to deregulation and tax cuts. All this could stimulate economic growth,” underlines the big financier of the CAQ government.
However, the imposition of customs tariffs is an issue, recognizes Eric Girard. Like François Legault, he argues that North American production chains are largely integrated, so that a product manufactured in the United States will be dependent on Canadian materials, and vice versa.
“We will have to argue that our exports are to the advantage of the Americans,” he emphasizes.
In the end, “the positive effects could be greater” than the negative effects, says Mr. Girard.
Duhaime optimistic
Conservative leader Éric Duhaime, for his part, sees a positive influence of the future American administration on Quebec’s tax policies.
“I think this will force Quebec to show realism. Regardless of the government or the party in power, it will force Quebec to review the role of the State and interventionism,” he believes.
“We will be forced to start saying that we must let go of the taxpayer, that we will have to give a break to Quebec taxpayers, who are already taxed far too much,” he added.
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