Quebec premier warns Trump tariffs would bring ‘inflationary surge’ to U.S.

Quebec Premier François Legault has issued a stern warning about the potential impact of U.S. president-elect Donald Trump’s proposed tariffs on both the Canadian and American economies. In a recent op-ed published in The Hill, Legault emphasized that imposing tariffs on Canadian imports would not only harm the Canadian economy but also have negative consequences for the U.S. economy.

Legault highlighted the deep economic integration between Quebec and the U.S. since the free trade agreement signed by President Ronald Reagan. He argued that imposing customs tariffs on Canadian products would be self-destructive for the American economy, causing inflation and uncertainty that could deter investment on both sides of the border.

The Quebec Premier pointed out that the threat of tariffs has already created significant uncertainty, with economists predicting that a 25 per cent tariff could devastate the Canadian economy and put critical industries at risk. Ontario Premier Doug Ford even warned that as many as 500,000 jobs in Ontario could be in jeopardy if a broad-based tariff scheme is implemented.

Legault urged Trump to allow Canada time to address his concerns, such as border security and immigration control, before resorting to tariffs. He emphasized that imposing a 25 per cent levy on Canadian exports would not only reduce the U.S. GDP but also drive up inflation, impacting American consumers and businesses.

The Premier also highlighted the importance of Quebec’s exports to the U.S., such as aluminum and military aviation supplies, as well as the contribution of Quebec’s hydroelectricity to New York’s energy supply. He underscored the interconnected nature of the Canadian and American economies, noting that they essentially operate as a customs union in terms of trade.

In response to the potential imposition of tariffs, Legault stated that Quebec is considering retaliatory measures. While emphasizing the preference for no tariffs at all, he acknowledged the need to prepare a response plan if tariffs are implemented.

Overall, Legault’s message underscores the importance of maintaining strong economic ties between Canada and the U.S. and the potential negative consequences of disrupting this relationship with tariffs. It is essential for both countries to work together to find mutually beneficial solutions that support economic growth and stability on both sides of the border.