QUEBEC — Premier François Legault has revised upwards the number of jobs which could be lost in Quebec if the United States slap 25 per cent tariffs on Canadian and Quebec exports.
Recommended Videos
After predicting in January that Quebec could lose 100,000 jobs should tariffs be imposed on aluminum and softwood lumber exports, Legault said Monday that number could be even higher.
“It’s serious,” Legault said in a Radio-Canada interview Monday evening. “We estimate, if there are variable tariffs, that we will lose 100,000 jobs in Quebec. But if ever it was 25 per cent on everything, we’re talking 160,000 jobs just in Quebec.”
Asked how long it would take for the tariffs to be felt, Legault answered, “a certain number of months, say six months.”
They were Legault’s first comments since U.S. President Donald Trump Monday confirmed he was proceeding with a 25 per cent tariff on U.S. imports from Canada and Mexico.
Legault, nevertheless, said he was still hoping Trump changes his mind, as he is known to do quite often. He said, like the federal government, he wants to see the specifics of Trump’s plan.
Legault also said he hopes Prime Minister Justin Trudeau manages to talk to Trump to buy more time, as happened the last time the tariff deadline loomed.
“I don’t think it will be 25 per cent because there are products he (Trump) can’t do without,” Legault said. “Take Alberta oil. He needs it. Look at Quebec. Electricity, aluminum, wood. He can’t do without these. He’s not going to put 25 per cent on aluminum which will increase the cost of automobiles in the United States.
“I just can’t be.”
But Legault insisted said Quebec is ready to face the music with its own Plan B, which has been in the planning stages for weeks,
He announced a special cabinet meeting will be held Tuesday, where the government will put the finishing touches on a new diversification fund for Quebec companies to help them through the storm.
The spring budget of the government will also include more funds for agencies likes Investissement Québec to invest in Quebec companies, he said. The government plans to step up infrastructure spending in roads and hospitals to create new jobs.
Quebec can also cushion the blow because of the presence of Hydro-Québec, which already announced plans to spend from $155 billion to $185 billion to double its production and create thousands of jobs.
“We’re opening the tap,” Legault said. “It’s the role of the government to say, if we lose 100,000 jobs, what can we do to help businesses to get through this but also diversify. And how to act to replace certain lost jobs by public or government spending.
He downplayed the possible effects on Quebec’s already historic $11 billion deficit.
“I have a responsibility to protect Quebecers and that’s what we’re going to do,” he said, noting not all the Canadian provinces can tap into such institutions.
Legault commented on Ontario Premier Doug Ford’s threat to cut off power to the United States in the event of tariffs. As he as said during his recent trip to Washington, Legault said retaliatory tariffs are not excluded.
Ottawa, he said, already has a draft list of counter tariffs worth $30 billion that Canada can impose on everything from American orange juice to cosmetics, sinks and bathtubs. A second series would be imposed later on vehicles, aluminum and steel, aerospace products and fruits and vegetables.
“I have to protect Quebecers,” Legault said. “And to ensure these tariffs are in the place the shortest period possible we have to hurt Mr. Trump. What would hurt Mr. Trump the most would be taxes on our exports or even retain such products as oil, wood aluminum, electricity.
“He needs these. As this moment we start with counter tariffs. After that, I agree with Doug Ford. We have to exclude nothing. We have to make Mr. Trump pay the price for decisions that make no sense even for the Americans.”
He would not say, however, when Canada should slap on the retaliatory tariffs.
“We won’t show our cards too soon,” he said.