Business leaders in Chaudière-Appalaches express alarm over escalating trade tensions due to U.S. tariffs, highlighting potential harm to local exporters. Executives emphasize the need for careful retaliatory strategies that avoid damaging local industries, with suggestions to target specific American goods instead of essential imports. Concerns about market substitution and job creation in the U.S. rather than Quebec are raised, alongside the hope that businesses can endure the challenges posed by the trade conflict.
Concerns from Business Leaders Amidst Trade Tensions
Four prominent executives from key companies in Chaudière-Appalaches have voiced their concerns regarding the escalating trade war ignited by U.S. President Donald Trump’s tariff threats, which have significantly impacted local exporters.
Strategic Responses to Tariffs
Charles Dutil, CEO of Manac, emphasizes the necessity of a cautious approach when Canada decides to retaliate against Trump’s tariffs. He believes that although a response may be warranted if tariffs are enacted, it should be carried out thoughtfully and with a comprehensive strategic plan. Dutil suggests involving manufacturing companies in the discussion to ensure that retaliatory measures do not inadvertently harm local industries already struggling.
He argues that targeting American goods, such as imported semi-trailers and Tesla vehicles, could be a more effective strategy. By focusing on these products, Canadian consumers would remain unaffected while U.S. manufacturers would face reduced market access. Dutil cautions against imposing tariffs on food products, as this would unfairly burden the Quebec middle class, particularly families doing their grocery shopping.
Charles Tardif, vice president of Maibec, shares his deep concerns about the unpredictability of Trump’s negotiations. He warns that if tariffs are increased, Quebec’s high-quality products may be replaced by cheaper, lower-quality alternatives. Tardif highlights the potential long-term risks of substitution in the market, which could threaten many local manufacturers.
Despite the challenges, Tardif believes that Maibec’s diversification in products and markets could help mitigate some of the impacts, although certain areas, like cedar shingle exports, remain highly vulnerable to tariff imposition.
Assessing the Economic Impact
Louis Veilleux, CEO of Groupe Mundial, characterizes the current situation as a “Category 3 storm,” recognizing the uncertainty it brings to the manufacturing sector. He expresses hope that businesses, having navigated tougher times before, will weather this storm as well. With only 10% of their market dependent on U.S. exports, Groupe Mundial is better positioned to handle potential tariffs, and Veilleux encourages investment in training and equipment during downturns to prepare for future recovery.
Julien Veilleux, president of Rotobec, reflects on the unfortunate reality that the ongoing trade war may compel him to create jobs in the United States rather than in Quebec. He acknowledges the critical role that local factories play in smaller communities and stresses his preference for supporting local employment. If tariffs persist, he could significantly ramp up production in his U.S. facilities, which would have serious implications for the jobs available in Quebec.
While he does not foresee immediate layoffs due to his company’s diversified market, Julien Veilleux warns that a prolonged trade conflict could lead to a recession, ultimately jeopardizing the Canadian economy as a whole.