Quebec invests $863M to mitigate impact of U.S. tariffs increase

In response to increased tariffs on exports bound for the United States, Quebec Premier Philippe Couillard has announced a $863-million investment over five years to help businesses across the province cope.

Some of those businesses say they are already feeling the impact of the tariffs 25 per cent on Canadian steel exports and 10 per cent on aluminum which were announced by U.S. President Donald Trump in May.

"To Mr. Trump, we say, 'Do what you think you have to do,'" Couillard told Radio-Canada. "We will produce as much of the best possible product as we can, at the best possible cost, and then we'll win."

The announcement comes just a week before the provincial election campaign kicks off in Quebec.

The funds aim largely to encourage continued investment in the affected industries, the government said, and keep the economy strong overall.

The government said the investment would boost the economy by $3 billion over the next five years.

One of the main elements of the government's plan is to expand the investment tax credit, which primarily targets companies in the manufacturing sector. Of the total money being set aside, $340 million will go to that measure, which is expected to help 5,000 Quebec companies by 2023.

Two-hundred and sixty million dollarsof the investment will go to help gradually reduce companies' contributions to Revenu Qubec's Health Services Fund until 2022.

Tens of millions of dollars have also been set aside to help businesses, especially in the agricultural sector, in the form of subsidies, loans and loan guarantees.

Another $55 million will go directly to support training in the workforce, and $15 million will be used to develop new markets, some of them interprovincial.

Most measures taking effect immediately

Most of the measures announced come into effect immediately. They come following recent meetings with Quebec employer and union representatives.

In May, the Trump administration imposed 25 per cent tariffs on Canadian steel exports, and 10 per cent on aluminum.

The value of these exports is estimated at $16.6 billion.

Ottawa then responded with increased tariffs of its own, on an equivalent value of miscellaneous imports from the U.S.

The Conseil du patronat du Qubec (CPQ), a major employers group that promotes business interests in the province, said in a statement that it welcomes the plan.

On the eve of the election campaign, which is set to begin on Aug. 23, the group said that although the new measures were made necessary due to Canada's trade relations with the U.S., "it is important to adopt a predictable, balanced and comprehensive approach across all sectors of our economy to make them more competitive and prevent other threats."