Boycotting U.S. products would be act of 'solidarity' in trade dispute, Couillard says

PremierPhilippeCouillardis encouragingQuebecersto think twice before buying American products, as a way of punishing the United States for its aggressivetrade policies.

On Wednesday, Couillardunveiled a series of measures aimed atpushing back against the recent tariffs imposed by Donald Trump's administration on Canadian steel and aluminum.

Along with meeting U.S. officials next week,Couillardplans to increasebuy-local requirements in public contracts.

As Trump'stariffs have done elsewherein Canada,they have also prompted calls for Quebec consumers to boycott American products.

Couillardsaid his government wouldn't formally back such efforts, warning that could provoke retaliatory measures from the south.He did, however,encourageQuebecersto take that initiative themselves.

"Both businesses and citizenswe eachhave the possibility of taking actions, of making choices in our daily lives,"Couillardsaid Wednesday in Quebec City.

"When we buy food, where does the food come from? When I buy a car, shouldn't I favour Quebec's hydro electricity, given that a large share of our oil comes from the U.S.?"

Taking such steps, he added, would be a show of "solidarity amongQuebecers."

Common front with Ontario

Though Quebec's economy is currently among the strongest in Canada, operating at nearly full employment,the government is concerned the latest series of tariffs could harm future growth.

Aluminum is among the top goods Quebec exports to the U.S. and is an economic engine in areas like theSaguenay, north of Quebec City. Across the province,the aluminum industry employs around30,000 people.

As of June 1, Canadian aluminum producers were forced to pay duties of 10 per cent for access to the U.S. market.

Last year, the U.S.slapped Canadian lumber companies another major employer in Quebec with tariffs as high as 20 percent.

Trump has also floated the idea of imposing duties on dairy products andvehicles made in Canada. The latter would be especially painful for Ontario.

Couillardcalled Ontario premier-designate Doug Ford Wednesday morning to propose they form a working group to coordinate their efforts atchallengingthe U.S. trade policies.

Ford was "very positive" to the idea,"Couillardsaid.

But the Quebec premier also noted how unpredictable the current U.S. administration can be, and said his government would take steps to seek out new export markets in Europe andCanada, as well as toexpanddemand within Quebec.

"We will begin to increase buy-local requirements in tendering processes that are under the control of the government,"Couillardsaid.

"And we will be very insistent that when we provide aid, [companies] will have to buy local and have local spin-offs."

Quebec has already established aid programs for its lumber and aluminumindustries.It announced $100 million in loans and guaranteed loans last week foraluminum companiesdealing with the tariffs.

All eyes on investor confidence

To date, the tariffs haven't been enough to dampen the rosy outlook most analysts are projecting for Quebec's economy.

A June note to investors put out by the Royal Bank of Canada began with the invitation: "Pick your favourite reasons to feel good about the prospects for Quebec's economy." The bank estimated GDP growth of 2.1 per cent this year.

Finance Minister Carlos Leitosaid Wednesday the U.S. tariffshave yet to have any discernible impact on growth indicators or government tax revenues.

But he also added a note of caution: "What we fear and what we're hearing is investments projects being delayed, or being channeled elsewhere."

By itself, a downturn in aluminum exports won't likely have an impact on the macro-economic outlook for Quebec.

Analysts, though, arenow monitoring the effect further trade bluster from Trump will have on investor confidence a key indicator of growth prospects.

"We don't have a clear answer yet, but at this stage we're starting to get a little more concerned," said Robert Hogue, a senioreconomist with RBC.