Quebec Expands Relief and Local Sourcing Rules Amid Trade War
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Premier Christine Fréchette announces new procurement rules and expanded SME funding as Canada launches counter-tariffs against the U.S.
Quebec is implementing new measures to protect local supply chains and diversify its economy as Canada initiates counter-tariffs against the United States, according to reporting from CBC News.
Premier Christine Fréchette convened a special cabinet meeting Monday to address the escalating trade tensions. The move follows Prime Minister Mark Carney's promise of a dollar-for-dollar response after the U.S. applied 50 per cent tariffs to roughly $28 billion of Canadian products. Canada's own retaliatory tariffs, which range from 15 to 50 per cent, are set to begin Tuesday.
To mitigate the impact, the Quebec government is adjusting procurement rules. The Centre d'acquisitions gouvernementales may now reserve public contracts for companies established in Canada or Quebec. Additionally, a 15 per cent preference margin may be granted to bidders based on value-added content from Quebec or Canada. For construction projects under $9.2 million, the Société québécoise des infrastructures, Santé Québec, and the Transport Ministry must require that at least 15 per cent of equipment and materials are sourced locally.
Financial relief is also expanding. The province is increasing flexibility for the Fonds offensif pour le renforcement des capacités économiques to accelerate liquidity and allow loan repayments. Furthermore, emergency assistance for small and medium-sized enterprises (SMEs) is now open to businesses with annual revenues between $200,000 and $2 million. To reduce U.S. reliance, Investissement Québec International is leading a task force to help SMEs secure contracts in other provinces.
Political reaction has been mixed. Québec Solidaire co-spokesperson Ruba Ghazal questioned the clarity of the impact of the counter-tariffs. Parti Québécois Leader Paul St-Pierre Plamondon and Conservative Party of Quebec Leader Éric Duhaime dismissed the announcement, while Quebec Liberal Party Leader Charles Milliard expressed doubt regarding the premier's readiness.