Quebec’s Minister of Economy, Christine Fréchette, outlines the province’s strategic preparations for Donald Trump’s possible return to the White House. The government is enhancing its U.S. presence and collaborating with local businesses to mitigate potential trade tensions, particularly concerning tariffs. Fréchette emphasizes the importance of proactive measures, financial support for affected companies, and community engagement to promote local businesses. As Quebec aims to diversify its export markets, it remains vigilant in navigating the complexities of a changing economic landscape.
Quebec’s Strategic Response to Trump’s Return
In anticipation of Donald Trump’s return to the White House, Christine Fréchette, Quebec’s Minister of Economy, Innovation and Energy, spoke with **Le Journal** about the province’s proactive measures to address the challenges posed by the outspoken president.
Preparing for Economic Impacts
Fréchette emphasized that the government has been preparing for various scenarios for months. Recognizing the likelihood of a new administration, they have enhanced their presence in the United States. Recently, they have intensified their preparations by consulting with local businesses. A collaborative strategy involves eight ministers working alongside the Prime Minister to navigate the complexities of potential trade tensions. Fréchette stressed the importance of waiting for concrete actions rather than reacting to social media commentary or individual statements.
When discussing the potential impact of a 25% tariff and its repercussions on the Quebec economy, she noted that the primary goal is to avoid tariffs altogether. However, should they be implemented, the consequences would be significant for both Quebec and the U.S. economy. With around 100,000 jobs at stake and 10,000 Quebec companies exporting to the U.S., the province is a crucial player in many sectors. Fréchette is prepared to support businesses should a trade war arise.
Financial Support and Community Engagement
Reflecting on previous economic interventions during the COVID-19 pandemic, Fréchette indicated that while inspiration could be drawn from those measures, the circumstances would differ significantly. Unlike the pandemic’s total business shutdown, a tariff war would allow businesses to operate, albeit under increased costs. The government is currently evaluating how the price hikes would be managed—whether absorbed by companies, passed on to American customers, or shared across the board.
Moreover, Fréchette encourages Quebecers to leverage their networks to promote local businesses, noting that solidarity may drive some to reconsider their purchasing habits. However, she acknowledges that individuals are free to choose their travel destinations, including Florida.
Regarding the potential halt of electricity exports to the U.S., Fréchette stated that while all options are on the table, the repercussions of such a move must be carefully considered. The government is building interconnections and does not want to reveal its strategies prematurely. The importance of maintaining a degree of unpredictability in their approach is crucial for effective negotiations.
As Quebec prepares for the economic summit in Davos, Switzerland, Fréchette is keen on diversifying export markets. Despite her commitment to international discussions, she intends to return promptly to monitor developments closely as Trump takes office. Additionally, when asked about the battery sector, she acknowledged the inherent risks in economic projects and highlighted the province’s ongoing endeavors in this emerging market.
With a range of initiatives in progress, including industrial tourism in Bécancour, Quebec remains focused on adapting to the evolving economic landscape while ensuring that its businesses are supported through potential challenges.