Quebec will make it tougher for American companies to win government contracts
;Resize=620)
The Quebec government says it is considering ways to limit its business with American companies, including by imposing a 25 per cent price increase on all calls for tender from the U.S.
Economy Minister Christine Fréchette floated the idea Monday morning on Radio-Canada’s radio show, Tout un matin.
“We are going to introduce, nothing more, nothing less, the equivalent of a 25 per cent rate on these submissions,” Fréchette said.
Under this new levy, “there is practically no chance for these companies to qualify,” she said.
A spokesperson for Fréchette later said in an email that the move had not been finalized.
The possible levy is part of a broader attempt by the province and Canada as a whole to respond to the United States’ 25 per cent tariffs set to go into effect Tuesday.
In Ontario, Progressive Conservative Leader Doug Ford went further, saying he would ban American companies from provincial contracts. He also said he would rip up Ontario’s nearly $100 million contract with Elon Musk’s Starlink.
The contract, signed in November, was meant to provide high-speed internet access through Starlink’s satellite service to 15,000 eligible homes and businesses in rural, remote and northern communities by June of this year.
In a statement, Fréchette’s office said it wouldn’t back out of a similar deal with Starlink.
“We need to respond to the tariffs imposed by the Trump administration, without harming Quebec and our interests,” the statement said. “For the time being, it’s not in our interest to deprive thousands of Quebecers of a high-speed Internet connection.”
‘We’re going to protect ourselves,’ Legault says
In response to Trump’s tariffs, Canada will impose 25 per cent tariffs on $155 billion worth of American goods.
Quebec Premier François Legault said he and other premiers unanimously support these retaliatory measures, adding that Canada’s counter-tariffs would “benefit our companies by 25 per cent.”
“We’re going to protect ourselves and we’re going to fight Mr. Trump,” he said.
More than 100,000 jobs will be lost in the province due to the tariffs, according to the premier.
“We have to stand up, we have to fight to protect our economy, to protect our jobs,” he told reporters Saturday night.
The Quebec government has also asked the province’s liquor board, the Société des alcools du Québec (SAQ), to remove all American products from its shelves starting Tuesday.
Montreal Mayor Valérie Plante said in a statement she was also exploring options, including imposing a 25 per cent levy similar to Quebec’s on calls for tender on city contracts.
“We will be working hand in hand with senior governments and our economic partners in the coming days to respond with strength and determination to this unjustified attack on our economy,” Plante said.
With 25 per cent tariffs slated to take effect on Feb. 4, 2025, some people are opting for local goods instead of American ones.